You are in the process of creating your projected budget for the next year. You...
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You are in the process of creating your projected budget for the next year. You have been listening to the news, and know that there is a 50% chance that we will experience a strong economy in the upcoming year, and a 50% chance that we will experience a weaker than average economy In strong economies, wages and prices of your inputs increase as there is more demand for them. In addition, in a strong economy, more people have jobs with insurance so the volume of services you provide increases. In a weaker economy, wages and Input prices stay about the same, but demand for your services decreases. What tool(s) would be most appropriate for you to use to explore what impact the future state of the economy may have on your budget? A. Scenario analysis B. Sensitivity analysis C. Variance analysis D. All of these a E. Ratio analysis
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