Match List - I with List - II.

List I

(Methods of risk analysis)

List II

(Meaning)

A.
Sensitivity Analysis
I.
A computer generates a very large number of scenarios according to the probability distribution of variable.

B.
Scenario Analysis
II.
Provides a way to present different possibilities so that we can be sure that decision we make today, take proper account of what we can do in future.

C.
Simulation Analysis
III.
Analysing the projects NPV (or IRR) for a given change in one of the variable at a time.

D.
Decision Tree Analysis
IV.
Analysing the projects NPV (IRR) for a given change in combination of variable.

Choose the correct answer from the options given below:

Question

List I (Methods of risk analysis)		List II (Meaning)
A.	Sensitivity Analysis	I.	A computer generates a very large number of scenarios according to the probability distribution of variable.
B.	Scenario Analysis	II.	Provides a way to present different possibilities so that we can be sure that decision we make today, take proper account of what we can do in future.
C.	Simulation Analysis	III.	Analysing the projects NPV (or IRR) for a given change in one of the variable at a time.
D.	Decision Tree Analysis	IV.	Analysing the projects NPV (IRR) for a given change in combination of variable.