Question

You are a jeweler who wants to make sure you have the maximum number of diamonds for sale. You notice that the number of diamonds available drops more when the size is relevant versus when the color is relevant. By comparing these factors, you are conducting a(n) _____ analysis.

Answer 1

Answer:

sensitivity

Explanation:

A financial sensitivity analysis consists of analyzing the variables that influence decisions related to a business. That is, the dependent and independent variables are analyzed and how they will affect the economic results of a company.

This analysis is effective so that companies can make projections about how one variable is directly influenced by another according to the data found, assisting in the financial and economic decision-making process that will contribute to the profitability and positioning of the business.