Question

The purpose of a sensitivity analysis performed on a cost effectiveness analysis is

            A. to determine the appropriate perspective of the study

            B. to gauge the reliability of the study

            C. to correct for inflation

            D. to correct for time preference

Answer 1

ANSWER ( A ) To determine the appropriate perspective of the study

As cost effectiveness analysis is a form of economic analysis in which they  compare costs and outcomes of different course of action .

And sensitivity analysis is used to determine the effect of data uncertanity   and assumption on the conclusion of the study . So , the purpose of sensitive analysis performed on cost effectiveness analysis is to determine the appropriate perspective  of the study .