Question

Which concept explicitly incorporates uncertainty in one or more input variables?

A) Cost-Benefit Analysis
B) Sensitivity Analysis
C) Break-even Analysis
D) Regression Analysis

Answer 1

Sensitivity Analysis is the concept that explicitly incorporates uncertainty in one or more input variables.

Step-by-step explanation:

The concept that explicitly incorporates uncertainty in one or more input variables is Sensitivity Analysis. Sensitivity analysis is a technique used to determine how changes in one or more input variables affect the output of a mathematical model. It helps identify the key factors that drive the variability in the results and assesses the impact of uncertainty.