The kind of analysis that consists of rerunning the model to determine the effect on the output variables of changes in the input variables is __________.
A) simulation
B) scenario analysis
C) sensitivity analysis
D) probabilitistic analysis

Question

Quizplus · Accepted Answer

Sensitivity analysis involves varying the input variables of a model to determine how sensitive the output variables are to these changes. It helps to identify the most critical input variables and how changes in them affect the model's output. Simulation refers to the method of generating possible outcomes of a situation by constructing a mathematical model of the system. Scenario analysis involves exploring possible scenarios by varying input assumptions or considering different scenarios. Probabilistic analysis is a modeling technique that involves assigning probabilities or chance events to the input variables to obtain a probability distribution of the output variables.

The Kind of Analysis That Consists of Rerunning the Model