Which one of the following techniques may be more appropriate to analyze projects with interrelated variables?
A) Sensitivity analysis
B) Scenario analysis
C) Break-even analysis
D) DOL analysis

Question

Quizplus · Accepted Answer

Scenario analysis is a technique that allows for the analysis of projects with interrelated variables by exploring how changes in one variable may impact other variables. This approach is useful when multiple variables have a significant impact on the outcome of a project, and the project's success is contingent upon the interplay between these variables. Sensitivity analysis, break-even analysis, and DOL analysis are all valuable tools, but they are less effective when dealing with complex projects with multiple interrelated variables.

Which One of the Following Techniques May Be More Appropriate