In engineering economics, sensitivity analysis
A)addresses risk in engineering projects.
B)addresses inflation in a country.
C)involves random variables with their probabilities.
D)assesses the effect of uncertainty on a decision.
E)involves cash flows that are known with certainty.

Question

Quizplus · Accepted Answer

Sensitivity analysis assesses the effect of uncertainty on a decision by varying the input parameters and observing the impact on the output.

In Engineering Economics, Sensitivity Analysis