This topic contains a solution. Click here to go to the answer

Author Question: Which of the following statements is correct? (Read 26 times)

Tb12162018

  • Full Member
  • ***
  • Posts: 134
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.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by Tb12162018 on Aug 7, 2023

Preeti

  • Full Member
  • ***
  • Posts: 163
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.
Answer Preview
Only 39% of students answer this correctly




Tb12162018

  • Member
  • Posts: 134
Reply 2 on: Aug 7, 2023
Excellent


blakcmamba

  • Member
  • Posts: 335
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

Did you know?

More than 4.4billion prescriptions were dispensed within the United States in 2016.

Did you know?

Drying your hands with a paper towel will reduce the bacterial count on your hands by 45–60%.

Did you know?

Medications that are definitely not safe to take when breastfeeding include radioactive drugs, antimetabolites, some cancer (chemotherapy) agents, bromocriptine, ergotamine, methotrexate, and cyclosporine.

Did you know?

Throughout history, plants containing cardiac steroids have been used as heart drugs and as poisons (e.g., in arrows used in combat), emetics, and diuretics.

Did you know?

Oxytocin is recommended only for pregnancies that have a medical reason for inducing labor (such as eclampsia) and is not recommended for elective procedures or for making the birthing process more convenient.

For a complete list of videos, visit our video library