CIMA Exam CIMAPRO19-P02-1 Topic 7 Question 87 Discussion

Actual exam question for CIMA's CIMAPRO19-P02-1 exam

Question #: 87
Topic #: 7

[All CIMAPRO19-P02-1 Questions]

To which technique for dealing with risk and uncertainty do ALL of the following statements apply?

* It requires that only one factor is considered at a time.

* It identifies areas which are crucial to a project, which can then be monitored if the project is chosen.

* It does not provide an indication of the likelihood of any change in the factors.

* Following the calculation, it requires the exercising of judgement to decide whether to accept or reject a project.

ASensitivity analysis

BProbability analysis

CScenario analysis

DAdjusting the discount rate to reflect risk.

Show Suggested Answer

Suggested Answer: A

by Kent at May 07, 2024, 11:49 PM

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Bette

4 days ago

Hold on, I'm not so sure. Probability analysis also seems to match those criteria. Maybe I should double-check the definitions just to be safe.

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Rene

8 days ago

I'm not sure, but I think it could also be D) Adjusting the discount rate to reflect risk. That also requires judgement to decide.

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Percy

10 days ago

Hmm, this sounds like sensitivity analysis to me. All those statements seem to fit the bill. I'm confident this is the correct answer - it's the one that makes the most sense.

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Desiree

11 days ago

I agree with you. Scenario analysis fits all the criteria mentioned in the question.

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Antonio

17 days ago

I think the answer is C) Scenario analysis.

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