The Better Bilt Co. is fairly cautious when considering new projects and therefore analyzes each project using the most optimistic, the most realistic, and the most pessimistic value for each
Variable. The company is conducting:
A) Forecasting research.
B) Sensitivity analysis.
C) Break-even analysis.
D) Scenario analysis.
E) Competitive analysis.

Question

Quizplus · Accepted Answer

The Better Bilt Co's approach of analyzing each project using the most optimistic, realistic, and pessimistic values for each variable falls under the purview of scenario analysis, which is a technique used to evaluate the potential outcomes of various future events or situations. Sensitivity analysis is a tool used to evaluate the effect of changes in one variable on the outcome of a particular project, whereas break-even analysis helps to determine the point at which the total cost of a product or service becomes equal to its total revenue. Forecasting research involves predicting future trends or market conditions, while competitive analysis involves monitoring and assessing the strengths and weaknesses of rival firms.