Question

Steve is fairly cautious when analyzing a new project and thus he projects the most optimistic, the most realistic, and the most pessimistic outcome that can reasonably be expected. Which type of analysis is he using?

Answer 1

Answer:

Scenario analysis

Explanation:

Scenario analysis is widely used to predict changes in the value of an asset in response to an adverse event, and can also be used to analyze a worst-case theoretical situation. Challenging one's future expectations, and making assumptions based on the plans and decisions on the most likely scenarios. Thus, it is is a method of analyzing and assessing possible events that could occur in the future, taking into account various feasible findings or outcomes.