Scenario analysis
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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.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
