Question

Tom Jordan is a manager for a McDonald's restaurant. Many of his key responsibilities include analyzing data and making key decisions for the success of his store. Tom's store has been experiencing decreased sales for breakfast services over the past 3 months. Tom is unsure why breakfast revenues are down while lunch and dinner revenues remain unchanged. Tom believes that he can drive revenue up by implementing a few different breakfast promotions such as free coffee or hash browns with the purchase of a meal. Tom performs an extensive analysis of how continuous changes in breakfast promotions could impact his daily revenue. What type of DSS analysis is Tom performing? optimization analysis sensitivity analysis transaction analysis goal-seeking analysis

Answer 1

Answer: sensitivity analysis

Explanation:

From the information given in the question, we can infer that the type of DSS analysis that Tom is performing is the sensitivity analysis.

Sensitivity analysis simply refers to the quantitative risk assessment that deajs with how the alteration of a particular variable will have an effect on the model's output.

Here, Tom believing that he can increase revenue up by implementing a few different breakfast promotions like the free coffee or hash browns shows that he's using sensitivity analysis.