To which technique for dealing with risk and uncertainty do ALL of the following statements apply?
• It requires that only one factor is considered at a time.
• It identifies areas which are crucial to a project, which can then be monitored if the project is chosen.
• It does not provide an indication of the likelihood of any change in the factors.
• Following the calculation, it requires the exercising of judgement to decide whether to accept or reject a project.
• It requires that only one factor is considered at a time.
• It identifies areas which are crucial to a project, which can then be monitored if the project is chosen.
• It does not provide an indication of the likelihood of any change in the factors.
• Following the calculation, it requires the exercising of judgement to decide whether to accept or reject a project.
A. Sensitivity analysis
B. Probability analysis
C. Scenario analysis
D. Adjusting the discount rate to reflect risk.
B. Probability analysis
C. Scenario analysis
D. Adjusting the discount rate to reflect risk.
Answer: A
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