Conducting scenario analysis helps managers see the:
A)impact of an individual variable on the outcome of a project.
B)expected range of outcomes from a proposed project.
C)maximum range of outcomes that can occur over the course of a proposed project.
D)various decision points of a specific project.
E)consequences of changing a firm's market share for a specific product.

Question

Quizplus · Accepted Answer

Scenario analysis is a technique used to help managers understand the potential range of outcomes that can occur under different sets of conditions or assumptions. It is particularly useful for evaluating the potential risks and uncertainties associated with a proposed project. By examining a range of possible scenarios, decision-makers can gain a better understanding of the likelihood and potential impact of each scenario, and can make more informed decisions about how to manage or mitigate risks. Option B best captures this concept by suggesting that scenario analysis helps managers see the "expected range of outcomes" from a proposed project.

Conducting Scenario Analysis Helps Managers See The