One characteristic of scenario analysis is that:
A) it allows only one variable at a time to change.
B) it limits variation to only the more likely 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 or scenarios, regardless of their likelihood. This comprehensive approach helps managers to be prepared for even the most unlikely situations and make better decisions. It also allows for a thorough examination of the potential implications of each scenario, enabling managers to identify and mitigate risks.

One Characteristic of Scenario Analysis Is That