In a what-if analysis the decision maker
A) changes the values of the uncertain input variables to see what happens to the performance measure being studied
B) assumes that all inputs are random variables
C) assumes that all outputs are deterministic
D) corrects for underestimated risk

Question

Quizplus · Accepted Answer

In a what-if analysis, the decision maker changes the values of uncertain input variables to observe the impact on the performance measure being studied. This helps in understanding the sensitivity of the model to changes in the input variables and aids in making better decisions. Therefore, option A is the correct choice. The other options are not relevant to what-if analysis.

In a What-If Analysis the Decision Maker