Sensitivity analysis allows for all of the following except:
A) accountability for uncertainty.
B) focus on a single point estimate of future exchange rates.
C) development of a range of possible future values.
D) consideration of alternative scenarios.

Question

Quizplus · Accepted Answer

Sensitivity analysis focuses on developing a range of possible future values and considering alternative scenarios to account for uncertainty. It does not focus on a single point estimate of future exchange rates, so option B is incorrect. The other options are all valid reasons why sensitivity analysis is important.

Sensitivity Analysis Allows for All of the Following Except