As the degree of sensitivity of a project to a single variable rises,the:
A) lower the forecasting risk of the project.
B) smaller the range of possible outcomes given a pre-defined range of values for the input.
C) more attention management should place on accurately forecasting the future value of that variable.
D) lower the maximum potential value of the project.
E) lower the maximum potential loss of the project.

Question

Quizplus · Accepted Answer

As the degree of sensitivity of a project to a single variable increases, the accuracy of forecasting the future value of that variable becomes more critical. The other options are not necessarily affected by the degree of sensitivity of a project to a single variable.

As the Degree of Sensitivity of a Project to a Single