2022-06-30

In risk analysis, several types of uncertainties are generally analyzed. However, what is the fundamental difference between risk analysis and sensitivity analysis to address uncertainties?
a) Risk analysis shows correlation of an input's value of a project with the value of its output while sensitivity analysis provides a functional form of that relationship
b) The use of probabilities to quantify uncertainties in risk analysis and absence of it in sensitivity analysis
c) The use of probabilities to quantify uncertainties in sensitivity analysis and absence of it in risk analysis
d) While sensitivity analysis is associated with one-by-one change in inputs' values, risk analysis is associated with the change of all inputs as a set
e) Sensitivity analysis is based on the concept of expected value while risk analysis is associated with the concept of variance

Nicolas Calhoun

Expert