1 answer

23) Which of the following best describes the term "sensitivity analysis"? A) It is a testing...

Question:

23) Which of the following best describes the term sensitivity analysis? A) It is a testing technique to determine how results would differ if key assumptions are changed. B) It is an analysis of the emotional sensitivity of a companys employees. C) It is an evaluation of the accuracy of the assumptions. D) It evaluates a companys financial condition by doing financial statement analysis
23) Which of the following best describes the term "sensitivity analysis"? A) It is a testing technique to determine how results would differ if key assumptions are changed. B) It is an analysis of the emotional sensitivity of a company's employees. C) It is an evaluation of the accuracy of the assumptions. D) It evaluates a company's financial condition by doing financial statement analysis

Answers

Sensitivity analysis is also know as what-if analysis which how results would differ when key assumption are changed.

Option A is correct.

.

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