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2. Sensitivity analysis has strong similarities to which of the following?
A. Probability Distributions
B. Risk Identification
C. Tornado Diagram
D. Statistical Sampling
HINT: Sensitivity analysis is a risk analysis technique, not a risk identification technique.
Question
3. The correct answer is C.
Sensitivity analysis is a risk analysis technique, not a risk identification technique. It is not a
sampling technique or a distribution. In Sensitivity analysis one looks at the effect of varying the
inputs of a mathematical model on the output of the model itself. The Tornado Diagram is an
example for sensitivity analysis.
Answer
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