One characteristic of scenario analysis is that:
A)It allows only one variable at a time to change
B)It limits variation to only three of the more likely variable combinations
C)All or nearly all variations are analyzed, regardless of likelihood
D)Managers generate each variation by hand

Question

Quizplus · Accepted Answer

Scenario analysis involves analyzing all or nearly all possible variations of future events, regardless of their likelihood. This approach allows decision-makers to consider a wide range of potential outcomes and their associated risks. Limiting the analysis to only a few likely variable combinations (B) or generating each variation by hand (D) may not capture the full range of possibilities. Choosing only one variable at a time (A) also may not provide a complete understanding of how multiple variables may interact to affect outcomes.

One Characteristic of Scenario Analysis Is That