The sensitivity of two parameters (P and n) for one project is evaluated by graphing the AW values versus percentage variation from the most likelyestimates. The curve for n has a slope very close to zero, while the P curve has a significant negative slope. One good conclusion from the graph is that:a. both PW and AW values are more sensitive to variations in P than n.b. the project should be rejected, since AW values vary with P and n.c. a better estimate of P needs to be made.d. the ROR is equally sensitive for both parameters.

The sensitivity of two parameters (P and n) for one project is evaluated by graphing the AW values versus percentage variation from the most likelyestimates. The curve for n has a slope very close to zero, while the P curve has a significant negative slope. One good conclusion from the graph is that:a. both PW and AW values are more sensitive to variations in P than n.b. the project should be rejected, since AW values vary with P and n.c. a better estimate of P needs to be made.d. the ROR is equally sensitive for both parameters.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section9.2: Elements Of Decision Analysis

Problem 2P

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