Question

**Note from student: Please be very descriptive, examples, etc

How and when do you use the following tools: (10 points each)

1. Sensitivity Analysis
2. Breakeven Analysis
3. Conjoint Analysis

Answer 1

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Here we will get into the topic of sensitivity analysis, break-even analysis, and conjoint analysis along with how and when they are used and their examples.

SENSITIVITY ANALYSIS can be defined as an analysis, which is mainly used by the organizations to keep the check over the errors. The main motive or the focus of the sensitivity analysis is to take under the consideration of the analysis of the uncertainty that would tend to have under the already given output.

Sensitivity analysis is used when the organization needs to compare the given outcomes with the standardized predictions.

BREAK-EVEN ANALYSIS can be described as, an analysis that is opted by the organization to make sure what strategies and implications should be applied in the organization to reduce the cost and cover the extended costs. Break-even analysis plays a very significant role in the organization, as it is very helpful for the organization to know no when a product would yield the best profit to the company.  

It is used when the organization needs to find out when a product will get them the best and the maximum profit. Break-even analysis is used in an organization by production management because they have the proper skills to analyze this analysis.

CONJOINT ANALYSIS can be described as, an analysis which is implicated in the organization to measure the behavior of the consumer towards the duck and services provided by the company to them. This analysis is used in the organization to get the consideration of consumer behavior and feedback, towards the product and services, so that the organization can make changes or improvements in the product and services according to the consumers.

This is used when an organization wants to know the feedback of the consumer towards their product and services.