Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Does this question concern anything in the syllabus ?
- This topic has 5 replies, 3 voices, and was last updated 1 year ago by LMR1006.
- AuthorPosts
- October 26, 2023 at 6:16 am #693999
Hello Sir,
I have gone through my notes and I have not found anything related to the below question:
What method of uncertainty or risk analysis is also called ‘What If?
A. Decision tree analysis B. Sensitivity analysis C. Simulation modelling D. Stress testing
October 26, 2023 at 9:24 am #694012Yes, it is the last part of chapter “risk and uncertainty”
October 26, 2023 at 1:52 pm #694024YES
The method of uncertainty or risk analysis that is also called ‘What If’ is B.
Sensitivity analysis. Sensitivity analysis, also known as what-if analysis or scenario analysis, involves analysing the impact of changes in variables or assumptions on outcomes. It helps identify the sensitivity of a decision to different variables and assesses how changes in those variables affect the outcome.
October 27, 2023 at 5:23 am #694054I have gone through the opentuition notes concerning risk and uncertainty and I have not found anything concerning risk and uncertainty.
October 27, 2023 at 7:32 am #694055There is plenty
Risk and Uncertainty – Maximin – ACCA Performance Management (PM)
Risk and Uncertainty – Perfect knowledge – ACCA Performance Management (PM)
Background:
Decision making involves making decisions now which will affect future outcomes which are unlikely to be known with certainty.
Risk exists where a decision maker has knowledge that several possible outcomes are possible – usually due to past experience. This past experience enables the decision maker to estimate the probability or the likely occurence of each potential future outcome.Uncertainty exists where the future is unknown and where the decision maker has no past experience on which to base predictions.
Whatever the reasons for the uncertainty, the fact that it exists means that there is no ‚rule‘ as to how to make decisions.The approach taken to make the decision will depend on the decision-makers attitude to risk.
A risk seeker will be interested in the best possible outcome, no matter how small the change that they may occur.
Someone who is risk neutral will be concerned with the most likely or ‘average’ outcome.
A risk avoider makes decisions on the basis of the worst possible outcomes that may occur.October 27, 2023 at 7:42 am #694056Why are you worrying about 1 objective test question!
There is likely to be something that you don’t understand, the question the way it is written , or you haven’t seen it asked in this way before, or it is an area that you not familiar with. That is what happens in exams under pressure. - AuthorPosts
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