Compare and contrast sensitivity analysis, scenarios analysis, and simulation.

What will be an ideal response?


All three measures try to discover the impact on the firm if the selected risk factor(s) hit abnormal levels. Sensitivity analysis changes one variable at a time. Scenario analysis changes multiple variables at one time. In simulation, variables are treated as if independent of each other and given their own unique probabilities of occurring.

Business

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In Hau Lee's uncertainty framework to classify supply chains, which supply chain process should be used for functional products with low supply uncertainty?

Fill in the blank(s) with the appropriate word(s).

Business

Factor analysis is a(n) ________ in that the entire set of interdependent relationships is examined

A) KMO measure of sampling adequacy B) orthogonal procedure C) interdependence technique D) varimax procedure

Business

Inflating your job titles and responsibilities on your résumé is ________

A) necessary to be competitive in today's job market B) impressive to employers C) unethical and should be avoided D) acceptable as long as you were employed during the dates you specify

Business

The Bonsai Nursery Corporation has $1,000 par value bonds with a coupon rate of 8% per year making semiannual coupon payments

If there are twelve years remaining prior to maturity and these bonds are selling for $876.40, what is the yield to maturity for these bonds? A) 9.80% B) 8.00% C) 9.77% D) 8.33%

Business