Why should a decision maker engage in sensitivity analysis?
What will be an ideal response?
Sensitivity analysis is a technique for systematically changing parameters in a model to determine the effects of such changes. Models are created with assumptions and the results given by the use of a model are only as good as the assumptions that were made in creating the model. For techniques such as the Laplace criterion, if the probability for one state of nature or payoff was estimated incorrectly, the result might suggest a choice far different from the choice made if a better estimate were used.
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Catherine visited American Eagle, an apparel store, to browse through the new spring collection. The sales associate greeted her when she entered the store, showed her the new collection, and stayed with her throughout her shopping experience, bringing her additional items while Catherine was in the dressing room. This sales service can best be described as
A. a perceived service. B. a personalized service. C. wardrobing. D. micromanagement. E. a standardized service.
Which of the following statements is not true when FLK Company discounts a note receivable to the bank?
A) FLK may ultimately have to pay the bank when the note is due. B) If the maker of the note pays the bank on time, no liability will result to FLK. C) FLK will receive the maturity value from the bank. D) A contingent liability arises for FLK.
With reference to ethical norms, to minimize costs is a form of ________
A) freedom B) efficiency C) security D) justice
The first unit took 10 hours and the third unit took 5.68 hours. What is the improvement rate?
A) 70% B) 30% C) 50% D) 90% E) 10%