Considering scenarios
You are a financial analyst preparing a scenario analysis for a company considering launching a new product. Since future sales and costs are uncertain, you want to evaluate how different conditions might impact profitability.
Your team proposes the following scenarios to analyze:
- Assuming the new product performs as well as the previous one.
- Assuming five-star product reviews will go viral on social media.
- Assuming inflation will rise and production costs increase.
- Assuming random factors will impact the product launch.
Based on you knowledge of scenario analysis, which three scenario(s) should you consider?
This exercise is part of the course
Advanced Probability: Uncertainty in Data
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