Question

Sensitivity analysis

a.) Consists of rotating each variable assumption toward the desirable side of the risk.
b.) Consists of rotating each variable assumption toward the undesirable side of the risk.
c.) Means considering the client's thoughts and feelings.
d.) Consists of making major changes to the assumptions.

Answer 1

Sensitivity analysis in business involves rotating each variable assumption toward the desirable side of the risk.

Step-by-step explanation:

Sensitivity analysis is a technique used in the field of business to assess the impact of changes in various variables on the outcome of a project or decision. It involves testing different assumptions and evaluating how sensitive the results are to those assumptions. The correct answer to the question is option a.) Consists of rotating each variable assumption toward the desirable side of the risk.