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Author Question: Which of the following statements is correct? (Read 83 times)

Tb12162018

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Which of the following statements is correct?

Simulation analysis is a computerized version of scenario analysis where input variables are selected randomly on the basis of their probability distributions.


One advantage of sensitivity analysis relative to scenario analysis is that it explicitly takes into account the probability of specific effects occurring, whereas Monte Carlo simulation cannot account for probabilities.


Sensitivity analysis is a good way to measure market risk because it explicitly takes into account diversification effects.


Scenario analysis allows us to assign probabilities to the base (or most likely) case and the worst case; then we can find the range of the project’s NPV to get a better idea of the project’s risk.



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Marked as best answer by Tb12162018 on Aug 7, 2023

Preeti

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Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Tb12162018

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Reply 2 on: Aug 7, 2023
Great answer, keep it coming :)


bulacsom

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

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