$1.$ What is forecasting risk? In general, would the degree of forecasting risk be greater for a new product or a cost$-$cutting proposal? Why?

$2.$ What is the essential difference between sensitivity analysis and scenario analysis?

$3.$ A coworker claims that looking at all this marginal this and incremental that is just a bunch of nonsense, saying, $$Listen$,$ if our average revenue doesn$$t exceed our average cost, then we will have a negative cash fl ow$,$

and we will go broke!$$ How do you respond?

$4.$ At one time at least, many Japanese companies had a $$no$-$layoff$$ policy $($for that matter, so did IBM$).$ What are the implications of such a policy for the degree of operating leverage a company faces?

$5.$ Airlines offer an example of an industry in which the degree of operating leverage is fairly high. Why?