Tom Watson is a manager for a McDonald's restaurant.Many of his key responsibilities include analyzing data and making key decisions for the success of his store.Tom's store has been experiencing decreased sales for breakfast services over the past 3 months.Tom is unsure why breakfast revenues are down while lunch and dinner revenues remain unchanged.Tom believes that he can drive revenue up by implementing a few different breakfast promotions, such as free coffee or hash browns with the purchase of a meal.Tom performs an extensive analysis of how continuous changes in breakfast promotions could affect his daily revenue.What type of DSS analysis is Tom performing?
A)Optimization analysis
B)Sensitivity analysis
C)Transaction analysis
D)Goal-seeking analysis

Question

Quizplus · Accepted Answer

Sensitivity analysis is a special case of what-if analysis-the study of the impact on other variables when one variable is changed repeatedly.For example, changing revenue in small increments to determine its effects on other variables would help a manager understand the impact of various revenue levels on other decision factors.

Tom Watson Is a Manager for a McDonald's Restaurant