Which analysis technique estimates how different scenarios can impact project outcomes?

The correct answer is scenario analysis because this technique specifically focuses on evaluating and comparing different hypothetical situations and their potential impacts on project outcomes. By creating a range of scenarios, such as best-case, worst-case, and most likely outcomes, scenario analysis allows businesses to assess how changes in variables—such as market conditions, project timelines, or resource availability—might affect the project's success or profitability.

This method helps decision-makers anticipate risks and prepare strategic responses by understanding the implications of varying factors, ultimately leading to more informed planning and risk management. In contrast, sensitivity analysis, while also a useful tool, focuses on how sensitive a project's outcomes are to changes in individual variables rather than evaluating multiple distinct future scenarios. Cost-benefit analysis evaluates the expected gains against the costs of a project, and trend analysis looks at past performance data to identify patterns over time, neither of which adequately addresses the assessment of multiple possible futures in the way scenario analysis does.