Question

Match the correct term to the definition. What-if Analysis Sensitivity Analysis Goal seeking analysis Optimization Analysis A. A special case of what-if analysis, is the study of the impact on other variables when one variable is changed repeatedly. B. Finds the input necessary to achieve a goal such as a desired level of output. C. An extension of goal-seeking analysis, finds the optimum value for a target variable by repeatedly changing other variables, subject to specified constraints. D. Checks the impact of a change in a variable or assumptions on the model.

Answer 1

Answer:

What-if Analysis-

A. A special case of what-if analysis, is the study of the impact on other variables when one variable is changed repeatedly.

Sensitivity analysis- D. Checks the impact of a change in a variable or assumptions on the model.

Goal seeking analysis- B. Finds the input necessary to achieve a goal such as a desired level of output

Optimization Analysis- C. An extension of goal-seeking analysis, finds the optimum value for a target variable by repeatedly changing other variables, subject to specified constraints.

Explanation:

The above are all related in some way; all connected to the what if analysis. What if analysis measures the change in target variables as a result of repeated change(hence the needed what if analysis) in variables or scenarios in a business case for instance. For example a change in information for a marketing strategy to see how it affects profit or market success. Sensitivity analysis is a form of what if analysis and the example above could also apply. We could also see how goal and optimization analysis come in here.