As the degree of sensitivity of a project to a single variable rises, the:
A)lower the forecasting risk of the project.
B)smaller the range of possible outcomes given a pre-deﬁned range of values for the input.
C)more attention management should place on accurately forecasting the future value of
That variable.
D)lower the maximum potential value of the project.
E)lower the maximum potential loss of the project.

Question

Quizplus · Accepted Answer

As the degree of sensitivity of a project to a single variable rises, it means that the outcome of the project is significantly affected by that variable. Therefore, accurate forecasting of that variable becomes crucial for the success of the project. Thus, choice C is the best answer. A, B, D, and E are not correct because they do not address the issue of accurate forecasting, which is the main concern in this scenario.

As the Degree of Sensitivity of a Project to a Single