To conduct a ____ analysis, you can ask, "How would the break-even point and profitability estimates change if an estimate about one or more other assumptions changes?"
A) sensitivity
B) variable
C) systematic
D) routine

Question

Quizplus · Accepted Answer

The term "sensitivity analysis" refers to the process of examining how changes in certain inputs or assumptions impact the results of a financial model or analysis. By manipulating different variables and assumptions, analysts can gain a better understanding of the risks and uncertainties associated with a given project or investment opportunity. Thus, choice (A) is the best answer. Choices (B), (C), and (D) are not accurate descriptions of this type of analysis.

To Conduct a ____ Analysis, You Can Ask, "How Would