When certain parameters of a model represent managerial policy decisions, what-if analysis provides information about what the impact would be of altering these policy decisions.

Question

Quizplus · Accepted Answer

What-if analysis is a modeling technique that allows managers to explore the impact of different scenarios and decisions on a model's outputs. By changing certain parameters of the model that represent managerial policy decisions, managers can see how altering these decisions would affect the model's results. Therefore, the statement is true.

When Certain Parameters of a Model Represent Managerial Policy Decisions