Question

You have estimated that if your investments earn 10 percent per year, you can retire at...

You have estimated that if your investments earn 10 percent per year, you can retire at age 65. If you re-estimate your retirement date assuming a lower investment return, you are using

future value.
marginal reasoning.
sensitivity analysis.
opportunity cost.
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Answer #1

Sensitivity analysis is used for analysing what if analysis. Sensitivity analysis analyses the changes in outcome of specified objective for a change in given output.

Hence, correct option is sensitivity analysis.

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