The question "What will total earnings be if we reduce our inventory stocking costs by 10%?" is a type of
A) goal-seeking analysis.
B) what-if analysis.
C) sensitivity analysis.
D) utility modeling.

Question

Quizplus · Accepted Answer

This is a what-if analysis question as it asks about the impact on total earnings if a specific variable (inventory stocking costs) is reduced by 10%. It is not a goal-seeking analysis as it does not ask about achieving a specific target or goal. It is also not sensitivity analysis or utility modeling as it does not involve varying multiple inputs or considering multiple criteria.

The Question "What Will Total Earnings Be If We Reduce