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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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