Which of the following best describes the difference between Data Tables and Scenario Analysis?
Scenarios can have multiple variables but can only accommodate up to 32 values, while a Data Table works with only one or two variables but can accept many different values for those variables.
Data Tables show potential outcomes based on a range of interest rates, while Scenarios cannot.
Scenarios can represent different financial forecasts, while Data Tables cannot.
Data Tables work with multiple variables, while Scenarios work with only one or two.
1 answer
The best description of the difference between Data Tables and Scenario Analysis is:
Scenarios can have multiple variables but can only accommodate up to 32 values, while a Data Table works with only one or two variables but can accept many different values for those variables.
This statement accurately captures the primary distinction in how each tool operates, emphasizing the variable limitations and capabilities associated with each analysis method.
