1. Fully define Sensitivity Analysis and provide examples.

2. Fully define Scenario Analysis and provide examples.

3. What are the basic differences between the Sensitivity Analysis technique and the Scenario Analysis technique?

  One board member wants to make sure that a complete risk analysis, including sensitivity and scenario analyses, is performed before the proposal is sent to the board. a. Perform a sensitivity analysis. b. What management information is provided by the sensitivity analysis?

A B 1 Observation Salary 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Position 1 $53,938.00 Finance 2 $52,694.00 Finance 3 $70,515.00 4 $52,031.00 Finance Experience 2 to 5 years 2 to 5 years Non-Finance Less than 2 years 2 to 5 years Non-Finance Less than 2 years Less than 2 years Finance Non-Finance More than 5 years Less than 2 years More than 5 years 2 to 5 years 9 $72,835.00 Non-Finance 10 $54,768.00 Finance 11 $52,282.00 Finance 12 $55,632.00 Finance 13 $63,856.00 Non-Finance 2 to 5 years Less than 2 years Less than 2 years 2 to 5 years Less than 2 years 2 to 5 years 14 $51,827.00 Finance 15 $51,948.00 Finance 16 $56,588.00 Finance 17 $68,858.00 Non-Finance Less than 2 years 18 $63,478.00 Non-Finance Less than 2 years 19 $83,846.00 Non-Finance 2 to 5 years 20 $59,253.00 Finance 21 $53,464.00 Finance D 5 $62,283.00 6 $57,718.00 7 $79,081.00 8 $48,621.00 Finance More than 5 years Less than 2 years 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 A D 2 to 5 years More than 5 years Less than 2 years Non-Finance More than 5 years B 22 $83,176.00 Non-Finance 23 $60,949.00 Finance. 24 $52,833.00 Finance 25 $72,914.00 26 $83,040.00 Non-Finance 2 to 5 years 27 $64,288.00 Non-Finance Less than 2 years 28 $64,562.00 Finance More than 5 years More than 5 years Less than 2 years 29 $52,644.00 Finance 30 $55,959.00 Finance 31 $88,730.00 Non-Finance 2 to 5 years 32 $77,683.00 Non-Finance 2 to 5 years 33 $56,339.00 Finance More than 5 years 34 $71,345.00 Non-Finance Less than 2 years 35 $63,799.00 Finance Less than 2 years 36 $78,074.00 Non-Finance More than 5 years 37 $65,546.00 Non-Finance Less than 2 years 38 $59,057.00 Finance 39 $66,024.00 Non-Finance 40 $59,457.00 Finance 41 $79,383.00 Non-Finance 2 to 5 years 42 $61,128.00 Non-Finance Less than 2 years Less than 2 years 43 $54,122.00 Finance 2 to 5 years Less than 2 years More than 5 years E F G H T J K L M