Question: While performing sensitivity analysis, two plotted lines intersect. What is the significance of this? Plotted lines should not intersect. The decision maker needs to re-evaluate

While performing sensitivity analysis, two plotted lines intersect. What is the significance of this?

  • Plotted lines should not intersect. The decision maker needs to re-evaluate the values.
  • The intersection of two lines indicates the two alternatives would be equivalent and either decision could be made.
  • Plotted lines should be parallel. The slope calculation is incorrect
  • The intersection point indicates the lowest expected value between decision options.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!