Cima P2 Exam Question No 13

Question No 13:

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.

A. Sensitivity analysis
B. Probability analysis
C. Scenario analysis
D. Adjusting the discount rate to reflect risk.

Answer: A