Scenario analysis is different than sensitivity analysis because:
A) no economic forecasts are changed.
B) several variables are changed together.
C) scenario analysis deals with actual data versus sensitivity analysis which deals with a forecast.
D) it is short and simple.

Question

Quizplus · Accepted Answer

Scenario analysis differs from sensitivity analysis because it involves changing several variables at once to assess the potential outcomes of different scenarios, whereas sensitivity analysis typically changes one variable at a time to understand its impact on the outcome.

Scenario Analysis Is Different Than Sensitivity Analysis Because