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Which of the following is not one of the probability analysis tools?

A. Ratio/range analysis
B. Decision tree
C. PERT simulation
D. PERT
E. All of these are probability analysis tools

User JAponte
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1 Answer

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Final answer:

Ratio/range analysis is not a probability analysis tool; it's usually used in financial analysis. Decision tree, PERT, and PERT simulation are all tools used for probability analysis.

Step-by-step explanation:

The question asks to identify which option is not a probability analysis tool. The tools commonly utilized in probability analysis to evaluate risk and make decisions include:

  • Decision tree: A graphical representation of decisions and their possible consequences, including chance event outcomes, resource costs, and utility.
  • PERT (Program Evaluation and Review Technique): A project management tool that models the tasks involved in completing a project to identify the minimum time needed for completion.
  • PERT simulation: An extension of PERT, which uses random inputs to simulate various scenarios and outcomes.

However, Ratio/range analysis is typically used in financial analysis to evaluate the performance, financial health, and value of a company, not in probability analysis. Therefore, the answer is A. Ratio/range analysis, as it is not a probability analysis tool.

User Photoionized
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