Question: El. Suppose a project has three risk variables: I, y, and 2:. You know the distribution for each of the variable (X, Y, and Z

El. Suppose a project has three risk variables: I, y, and 2:. You know the distribution for each of the variable (X, Y, and Z respectively). You know these variables are uncorrelated. a) Explain how you would conduct a sensitivity analysis of the project. :1" Explain why a Monte Carlo analysis would be preferred to a sensitivity analysis. Describe how you would eonduct one simulation of the Monte Carlo analysis. Dun \\u_-"\\-._-"\\-._-' Suppose you conducted Monte Carlo analyses for two mutually exclusive projects and have the following output. Make a policy recommendation between Project A and Project B and describe your rationale. Cumulative probability Probability Proloct A Project B Project A. Project B HPV NPV
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