Altering the inputs to a financial plan by changing one of the assumptions is called:
A) a redundancy check.
B) a pro forma evaluation.
C) goal seeking.
D) sensitivity analysis.

Question

Quizplus · Accepted Answer

Sensitivity analysis involves changing one assumption or input at a time in a financial model to see how it affects the outcome. This helps in understanding how sensitive the results are to changes in that particular assumption.

Altering the Inputs to a Financial Plan by Changing One