In the data table generated along with the tornado chart,the tool examines values ________.
A)10% away from the downside and evaluates the selected forecast holding the other forecasts constant
B)12.5% away from the downside and evaluates the selected forecast holding all the other forecasts constant
C)12.5% away from the upside and evaluates the selected forecast while holding all other variables constant
D)10% away from the base case and evaluates the selected forecast while holding all other variables constant

Question

Quizplus · Accepted Answer

The correct choice is D because in the context of sensitivity analysis, which is often visualized through a tornado chart, the tool typically examines how the output of a model changes when a single input variable is varied by a certain percentage (in this case, 10%) from the base case, while all other input variables are held constant. This approach helps in understanding the impact of each variable on the outcome.

In the Data Table Generated Along with the Tornado Chart,the