Difference between revisions of "Scenario analysis"
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According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]], | According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]], | ||
:[[Scenario analysis]]. A shorter version of simulation analysis that uses only a few outcomes. Often the outcomes are for three scenarios: optimistic, pessimistic, and most likely. | :[[Scenario analysis]]. A shorter version of simulation analysis that uses only a few outcomes. Often the outcomes are for three scenarios: optimistic, pessimistic, and most likely. | ||
| + | According to [[Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition)]], | ||
| + | :[[Scenario analysis]]. A risk analysis technique in which “bad” and “good” sets of financial circumstances are compared with a most likely, or base-case, situation. | ||
| + | According to [[Marketing Management by Keller and Kotler (15th edition)]], | ||
| + | :[[Scenario analysis]]. Developing plausible representations of a firm's possible future that make different assumptions about forces driving the market and include different uncertainties. | ||
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==Related concepts== | ==Related concepts== | ||
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*[[Introduction to Financial Management]]. | *[[Introduction to Financial Management]]. | ||
| − | [[Category: Financial Management]][[Category: Articles]] | + | [[Category:Marketing Management]][[Category: Financial Management]][[Category: Articles]] |
Latest revision as of 13:13, 4 June 2020
Scenario analysis is a shorter version of simulation analysis that uses only a few outcomes. Often the outcomes are for three scenarios: optimistic, pessimistic, and most likely.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Scenario analysis. A shorter version of simulation analysis that uses only a few outcomes. Often the outcomes are for three scenarios: optimistic, pessimistic, and most likely.
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Scenario analysis. A risk analysis technique in which “bad” and “good” sets of financial circumstances are compared with a most likely, or base-case, situation.
According to Marketing Management by Keller and Kotler (15th edition),
- Scenario analysis. Developing plausible representations of a firm's possible future that make different assumptions about forces driving the market and include different uncertainties.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
