Final answer:
The 'What if' technique is a sensitivity analysis that predicts results when underlying assumptions are changed. It helps decision-makers assess the impact of different assumptions on the outcome of a decision.
Step-by-step explanation:
The What if technique is a sensitivity analysis that predicts results when underlying assumptions are changed. It allows decision-makers to assess the impact of different assumptions on the outcome of a decision. By considering various scenarios and changing the input variables, the technique helps in understanding the sensitivity of the results to changes in assumptions.
For example, let's say you're analyzing the profitability of a new product. You start with certain assumptions about the sales volume, production cost, and selling price. Using the What if technique, you can test the impact of different assumptions. What if the sales volume is higher? What if the production cost increases? By changing these inputs and observing the effect on profitability, you can make more informed decisions.