_________ financial planning models are becoming increasingly popular because they often provide financial decision makers with more useful information than other models.
A) Deterministic
B) Probabilistic
C) Optimization
D) Sensitivity analysis

Question

Quizplus · Accepted Answer

Probabilistic financial planning models incorporate the uncertainty and variability of different factors, such as market conditions and investment performance, into their calculations. This can give decision makers a more realistic and nuanced view of their financial situation, compared to traditional deterministic models that assume everything will go according to plan. While optimization and sensitivity analysis are also important techniques in financial planning, they do not necessarily address uncertainty and variability to the same extent as probabilistic models.

_________ Financial Planning Models Are Becoming Increasingly Popular Because They