Sensitivity analysis helps to evaluate the risk associated with decisions.

Question

Quizplus · Accepted Answer

Sensitivity analysis is a tool used in decision-making to evaluate the potential impact of changes in key variables on the outcome of the decision. By examining different scenarios and evaluating the sensitivity of the decision to changes in key variables, decision-makers can gain a better understanding of the risks associated with their decisions. Thus, the statement "Sensitivity analysis helps to evaluate the risk associated with decisions" is true.

Sensitivity Analysis Helps to Evaluate the Risk Associated with Decisions