Question No 4:
To which technique for dealing with risk and uncertainty do ALL of the following statements apply?
• It requires that only one factor is considered at a time.
• It identifies areas which are crucial to a project, which can then be monitored if the project is chosen.
• It does not provide an indication of the likelihood of any change in the factors.
• Following the calculation, it requires the exercising of judgement to decide whether to accept or reject a project.
A. Sensitivity analysis
B. Probability analysis
C. Scenario analysis
D. Adjusting the discount rate to reflect risk.
Answer: A
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