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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Tiffiny

1 months ago

Sensitivity analysis, huh? More like 'sensibility' analysis, am I right? Just kidding, but seriously, these risk management techniques are like a game of Tetris - you gotta be quick, or the whole project comes crashing down.

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Alethea

3 days ago

B) Probability analysis

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Lindsay

12 days ago

A) Sensitivity analysis

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Gayla

2 months ago

Ah, the joys of risk management. It's like playing a game of Russian roulette, but with spreadsheets instead of guns. Just remember, the more factors you consider, the more chances you have to accidentally shoot yourself in the foot!

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Curt

2 days ago

User 3: I see your point, but I still think probability analysis is the best fit for all the criteria mentioned.

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Joanne

14 days ago

User 2: I disagree, I believe it's scenario analysis because it also requires judgment to decide whether to accept or reject a project.

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Gladis

16 days ago

User 1: I think the technique that fits all those statements is sensitivity analysis.

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Eliz

2 months ago

Adjusting the discount rate? Really? That's like trying to solve a math problem by hitting it with a hammer. I'm going with sensitivity analysis - it's the only one that ticks all the boxes here.

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Annmarie

14 days ago

Yeah, sensitivity analysis makes the most sense in this situation.

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Leota

15 days ago

I think sensitivity analysis is the way to go too.

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Felice

1 months ago

I agree, sensitivity analysis seems like the best option here.

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Ceola

2 months ago

Scenario analysis? That's a bold choice, but I can see how it might work. Gotta think outside the box, right? Although, now that I re-read the question, sensitivity analysis does seem like the way to go.

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Alonzo

1 months ago

Scenario analysis might be too broad for this situation.

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Jordan

1 months ago

But scenario analysis could also work, right?

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Kathrine

2 months ago

Yeah, it requires looking at one factor at a time.

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Cheryll

2 months ago

I think sensitivity analysis is the way to go.

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Bette

2 months 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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Sharika

1 months ago

I agree, sensitivity analysis also requires judgement to decide whether to accept or reject a project.

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Omega

1 months ago

I think sensitivity analysis is the correct answer. It focuses on one factor at a time.

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Rene

2 months 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

2 months 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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