contingency analysis |
Definition
Simulation analysis that employs different qualitative assumptions (associated with probable events or phenomenon) to paint different scenarios, and tries to come up with the most optimal responses under the circumstances. It asks questions such as "If we cut our prices by five percent, then how our competitors will respond?” or "What will happen to our cash flow if a fire destroys our communications network?” and seeks answers through in-depth analysis and broad based consultation. Also called if-then analysis. See also sensitivity analysis.
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contingency analysis is in the Decision Making, Problem Solving, & Strategy, Disaster Planning & Risk Management and Planning & Scheduling subjects.
contingency analysis appears in the definitions of the following terms: if-then analysis and sensitivity analysis
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