Suppose you have been hired as a management consultant by a

Suppose you have been hired as a management consultant by a major oil company to help it optimally price gasolne at its service stations. Your clent would

Solution

The correct answer must be option: D = Develop a model that allows for scenario analysis.

Scenario analysis is the process of analysing possible future events by considering alternative possible outcomes. The analysis is designed to allow improved decision-making by allowing consideration of outcomes and their implications. As a management consultant you can suggest the team to use scenario analysis by examining past trends in gasoline prices and consumer demand, future price trend and demands, consumer demand elasticity, substitutes of gasoline etc.

I hope my solution solves your query.