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Sensitivity analysis helps managers evaluate risks ________. A. by showing the effects of changes to the original data or an underlying assumption B. by identifying inconsistencies in underlying assumptions and actual conditions C. by removing the effects of foreign currency exposure and other uncontrollable factors D. by identifying gaps in the production process using information on setups needed to manufacture products

Respuesta :

segehood

Answer:

A. by showing the effects of changes to the original data or an underlying assumption

Explanation:

Sensitivity analysis refers to the process of determining the number of variation that exist in a system as a response towards specific ranges of inputs. It involves predicting how a system determines how dissimilar values of an independent variable affect a distinct dependent variable under a given set of conditionss, thereby focusing on dependent variable when various parameters changes. It helps in analyzing different values of a set of independent variables affecting a specific dependent variable under set conditions.

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