Sensitivity analysis for forecasting work is done to: make sure that the forecas

Question

Sensitivity analysis for forecasting work is done to:

make sure that the forecasted balance sheet balances.

make sure that there is no excess cash as part of your forecaseted financial statements.

allow the firm to be sensitive to competition.

see the effect of change in your base case assumptions on the forecasted financial statements.

make sure that the forecasted balance sheet balances.

make sure that there is no excess cash as part of your forecaseted financial statements.

allow the firm to be sensitive to competition.

see the effect of change in your base case assumptions on the forecasted financial statements.

Explanation / Answer

Sensitivity analysis for forecasting work is done to:

see the effect of change in your base case assumptions on the forecasted financial statements.

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