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    Sensitivity analysis

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    A. how sensitive the decision maker is to risk.

    b. changes in the number of states of nature.

    c. changes in the values of the payoffs.

    d. changes in the available alternatives.

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    Solution Preview

    Hi there,
    <br>Your answer is C.
    <br>Here is some info on sensitivity analysis:
    <br>A sensitivity analysis is the process of varying model input parameters over a reasonable range (range of uncertainty in values of model parameters) and observing the relative change in model response. Typically, the observed changes in ...