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

Author Question: Which of the following statements is correct? (Read 9 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
Great answer, keep it coming :)


bassamabas

  • Member
  • Posts: 294
Reply 3 on: Yesterday
Excellent

 

Did you know?

Excessive alcohol use costs the country approximately $235 billion every year.

Did you know?

Certain rare plants containing cyanide include apricot pits and a type of potato called cassava. Fortunately, only chronic or massive ingestion of any of these plants can lead to serious poisoning.

Did you know?

In 1835 it was discovered that a disease of silkworms known as muscardine could be transferred from one silkworm to another, and was caused by a fungus.

Did you know?

Pubic lice (crabs) are usually spread through sexual contact. You cannot catch them by using a public toilet.

Did you know?

Human neurons are so small that they require a microscope in order to be seen. However, some neurons can be up to 3 feet long, such as those that extend from the spinal cord to the toes.

For a complete list of videos, visit our video library