Steve is fairly cautious when analyzing a new project and thus he projects the most optimistic, the most realistic, and the most pessimistic outcome that can reasonably be expected. Which type of analysis is he using?
A) Simulation testing
B) Sensitivity analysis
C) Break-even analysis
D) Rationing analysis
E) Scenario analysis

Question

Quizplus · Accepted Answer

Steve is using scenario analysis, which involves analyzing different potential outcomes based on different scenarios or sets of variables. He is projecting the most optimistic, realistic, and pessimistic outcomes, which are different scenarios.

Steve Is Fairly Cautious When Analyzing a New Project and Thus