Sensitivity analysis is when A) the expected value of one action is significantl

Question

Sensitivity analysis is when A) the expected value of one action is significantly larger then the expected value of a second alternative action B) one changes the assumptions (eg probability of outcome occurrence) in the payoff matrix to see if such changes result in the choice of different strategies C) one action would be chose. Because of higher expected value and an alternative action would be chosen because of smaller std deviation D) an individual dislikes increases in risk Sensitivity analysis is when A) the expected value of one action is significantly larger then the expected value of a second alternative action B) one changes the assumptions (eg probability of outcome occurrence) in the payoff matrix to see if such changes result in the choice of different strategies C) one action would be chose. Because of higher expected value and an alternative action would be chosen because of smaller std deviation D) an individual dislikes increases in risk A) the expected value of one action is significantly larger then the expected value of a second alternative action B) one changes the assumptions (eg probability of outcome occurrence) in the payoff matrix to see if such changes result in the choice of different strategies C) one action would be chose. Because of higher expected value and an alternative action would be chosen because of smaller std deviation D) an individual dislikes increases in risk

Explanation / Answer

the sensitivity analysis is done when we get the expected value of one action is significantly larger then the expected value of a second alternative action, as this method let us check the variation in the output'hence option A is correct

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