Scenario analysis is a way of testing forecasts by changing one assumption at a time.

A. True

B. False

False

Explanation:

Although scenario analysis is a way of testing forecasts but not necessarily one assumption at a time.

Scenario analysis is done by keeping all the key risks in mind and predicting the possible outcomes, primary effects and secondary effects on a project. Secondary effects are further analysed to see if there are any other possible risks to consider.

It is not compulsory to change just one attribute at a time, many factors are alone and together analysed to predict better and have a proper set of actions ready to tackle the crisis.