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Which of the following statements about project risk analysis techniques is most correct?

1) Sensitivity analysis considers the joint (combined) impact of changes in uncertain input variables on profitability.

2) Scenario analysis considers the joint (combined) impact of changes in uncertain input variables on profitability.

3) Scenario analysis, as it is done in practice, usually involves four scenarios.

4) Dark-cloud analysis considers the impact of abandoning the project before the end of its useful life.

5) In a sensitivity analysis graph, the steeper the plot lines, the lower the risk.

Operation Management, Management Studies

  • Category:- Operation Management
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