GROUP 7

Question 1

is an analysis technique that works on the basis of what-if analysis like how independent factors can affect the dependent factor and is used to predict the outcome when analysis is performed under certain conditions.

Answer 1

Sensitivity analysis

Question 2

is a method for predicting the outcome of a decision if a situation turns out to be different

Answer 2

Sensitivity analysis

Question 3

is the simplest method of sensitivity analysis. It involves changing one factor at a time and observing how it affects the outcome.

Answer 3

One-way analysis

Question 4

is a variation of one-way analysis that allows you to change two factors at the same time and observe how they affect the outcome.

Answer 4

Two-way analysis

Question 5

is a method of sensitivity analysis that involves creating different scenarios based on different combinations of factors and assumptions.

Answer 5

Scenario analysis

Question 6

is a method of sensitivity analysis that uses random sampling and simulation to generate many possible outcomes based on the inputs and their probability distributions.

Answer 6

Monte Carlo analysis

Question 7

two approaches to analyzing sensitivity:

Answer 7

LOCAL SENSITIVITY ANALYSIS
GLOBAL SENSITIVITY ANALYSIS

Question 8

is derivative based (numerical or analytical). indicates that the derivatives are taken at a single point.

Answer 8

Local sensitivity analysis

Question 9

This method is for simple cost functions, but not feasible for complex models.

Answer 9

Local sensitivity analysis

Question 10

is the second approach to sensitivity analysis, often implemented using Monte Carlo techniques.

Answer 10

Global sensitivity analysis

Question 11

This approach uses a global set of samples to explore the design space.

Answer 11

Global sensitivity analysis

Question 12

Sensitivity analysis helps in understanding which variables or factors have the most impact on the outcome or results.

Answer 12

Identifies key drivers:

Question 13

Sensitivity analysis helps in assessing the level of risk and uncertainty associated with the project or decision.

Answer 13

Evaluates risk and uncertainty:

Question 14

Sensitivity analysis aids in developing robust plans by considering multiple scenarios and variations, ensuring that plans can adapt to different possible outcomes

Answer 14

Supports effective planning:

Question 15

Sensitivity analysis relies on assumptions that may not accurately represent the real-world complexity and dynamics, potentially leading to biased or incomplete results.

Answer 15

Assumption limitations:

Question 16

Sensitivity analysis requires reliable data, and if the data is insufficient or of poor quality, the analysis may produce unreliable or misleading outcomes.

Answer 16

Data requirements:

Question 17

Conducting sensitivity analysis can be time-consuming and resource-intensive, especially with complex models or numerous variables.

Answer 17

Time-consuming:

Question 18

is one of the tools that help decision makers with more than a solution to a problem. It provides an appropriate insight into the problems associated with the model under reference.

Answer 18

Sensitivity analysis