The form of risk analysis that examines the effect of various combinations of value drivers is known as
A)scenario analysis.
B)sensitivity analysis.
C)value driver analysis.
D)expected value analysis.

Question

Quizplus · Accepted Answer

Scenario analysis examines the effect of various combinations of value drivers. Sensitivity analysis examines the effect of changing one value driver while keeping others constant. Value driver analysis identifies and examines the key drivers of value in a business, while expected value analysis calculates the average outcome of multiple scenarios based on probabilities assigned to each scenario. Therefore, the correct answer is scenario analysis.

The Form of Risk Analysis That Examines the Effect of Various