Sensitivity analysis means:
Correct answer: D. Both (a) & (b)
- A. While evaluating a certain project we have used a certain cost certain yield estimate and certain price increase estimates
- B. In all cases our assumption may not prove true
- C. None of these
- D. Both (a) & (b)
Explanation
Sensitivity analysis tests how a project's result changes when uncertain assumptions such as cost, yield, or price differ from the estimates used. Since assumptions may not prove true, both statements describe the need for sensitivity analysis.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
Practise Forest Management
269 free Forest Management MCQs from Forestry, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Forestry questions like this
Forestry is on this paper prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for it.
More Forest Management questions
Financial analysis means:
Project evaluation methods or profitability criteria or feasibility criteria are:
Project evaluation means:
Socio-political constraints on economic decisions are:
Migration flows: Some projects are undertaken to stop the movement of people from nural areas to urban areas / and:
Bakain (Melia azedarach) utilization of timber: