Shawn is doing some budgeting for his new start-up business. He has developed a budget in Excel using formulas, as he was taught to do in college. He would like to check the impact of changing his price and the commission he pays his sales people. Shawn will be doing:
A)What-if analysis
B)Qualitative analysis
C)Sensitivity analysis
D)Goal-seeking analysis
E)A simulation.

Question

Quizplus · Accepted Answer

Sensitivity analysis is a technique used to assess the impact of changing one or more input variables on the output of a model. In this case, Shawn is changing his price and the commission he pays his sales people, and he wants to see how these changes affect his budget. Sensitivity analysis is therefore the most appropriate technique for Shawn to use.

Shawn Is Doing Some Budgeting for His New Start-Up Business