An organization has developed a model to determine the most profitable rate of production. The organization varies the cost of labor in the model to determine how much the changes affect the optimal production level. Which type of analysis does this scenario demonstrate?
A) Forecast.
B) Sensitivity.
C) Critical path.
D) Decision.

Question

Quizplus · Accepted Answer

This scenario demonstrates sensitivity analysis, which involves changing one variable (in this case, the cost of labor) to see how it affects the outcome (optimal production level).

An Organization Has Developed a Model to Determine the Most