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Sensitivity analysis uses Tornado diagram to analyse risks.Select the right answer.
Tornado diagram is used to compare the relative importance of variables that have a high degree of uncertainty to those that are stable.
Sensitivity analysis is qualitative risk management tool. Monte Carlo technique is a sensitivity analysis technique. Probability distribution is not used for modeling and simulation.
PMBOK 5th Ed, 11.4.2 Quantitative risk analysis: Tools. Basically, the tornado diagram is a typical display format of the sensitivity analysis. A Tornado diagram, also called tornado plot or tornado chart, is a special type of Bar chart, where the data categories are listed vertically instead of the standard horizontal presentation, and the categories are ordered so that the largest bar appears at the top of the chart, the second largest appears second from the top, and so on. They are so named because the final chart appears to be one half of a tornado. This diagram is useful for sensitivity analysis - comparing the relative importance of variables. It assists the project manager in focusing on the most critical variable of the project, sorting and prioritizing the variable according to impacts on the project objective, realizing how much the value of the project is impacted by the uncertainties of the project, and decide where to invest any additional efforts and resources.
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