Answer (C) is correct . Sensitivity analysis determines how a result varies with changes in a given variable or parameter in a mathematical decision model. For example, in a present value analysis, a manager might first calculate the net present value or internal rate of return assuming that a new asset has a 10-year life. The NPV or IRR can then be recalculated using a 5-year life to determine how sensitive the result is to the change in the assumption.
Answer (A) is incorrect because Expected value is the probabilistically weighted average of the outcomes of an action.
Answer (B) is incorrect because Learning curve analysis quantifies how labor costs decline as employees learn their jobs through repetition.
Answer (D) is incorrect because Regression, or least squares, analysis determines the average change in the dependent variable given a unit change in one or more independent variables.
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