Answer the following questions based on the Tornado and Sensitivity graphs given below.Which input variables are the most and the least impactful variables? Please mention two for each case.How the objective function changes by changing the most impactful input variable? Gross Sales (87)Fixed Costs (B15)Prob of Winning Case (86)Variable Costs (816)Prob(Mtg Process Works) (B5) Precision Tree Textbook VersionFor Academic Use OnlyLegal Fees (810)Interest Rate (B11)PI Stock Price (B12)$1,500,000$2,000,000$2,500,000000'000'ESExpected Value$3,500,000$4,000,000$4,500,000$5,000,000$5,500,000 Expected ValueExpected Value$5,500,000$5,000,000$4,500,000$4,000,000$3,500,000$3,000,000$2,500,000$2,000,000$1,500,000$4,800,000$4,600,000$4,400,000$4,200,000$4,000,000$3,800,000$3,600,000$3,400,000$3,200,000$3,000,000$2,800,000$20,000,000%St$25,000,000ⓇExpected Value Node 'Decision' (825)With Variation of Gross Sales (B7)Precision Tree Textbook VersionFor Academic Use Only$30,000,000$35,000,000Gross Sales (87)$40,000,000Expected Value of Node 'Decision' (825)With Variation of Prob of Winning Case (86)Precision Tree Textbook VersionFor Academic Use OnlyProb of Winning Case (B6)$45,000,00075%-000'000'ossExpected ValueExpect$5,500,000$5,000,000$4,500,000$4,000,000$3,500,000$3,000,000$2,500,000$2,000,000$3,556,001$3,556,000$3,556,000$3,556,000$3,556,000$3,556,000$3,555,999$47$1,000,000$48000'000'z$Expected Value of Node 'Decision' (825)With Variation of Fixed Costs (B15)Precision Tree Textbook VersionFor Academic Use Only$3,000,000$4,000,000$5,000,000-Fixed Costs (815)Expected Value of Node 'Decision' (825)With Variation of PI Stock Price (B12)$6,000,000PI Stock Price (B12)Precision Tree Textbook VersionFor Academic Use Only- ESS$7,000,000554$55$8,000,000$9,000,00055

In optimization, it is important to identify a variable that requires effort to evaluate but has the least or no impact on the objective function. Tornado graphs help the decision-makers to identify such variables. The variables are shown on the vertical axis in tornado graphs.In tornado graphs, the variables on the top are the most important variables and the variables on the bottom are the least important variables. In the given tornado graph, the two most important variables are gross sales(B7) and fixed costs(B15). On the other hand, the least important variables are interest rates(B11) and PI stock prices(B12).Based on the Tornado graph, two variables are identified as the most important input variables. 1. Gross sales 2. Fixed costs 1. Gross Sales: Based on the given graph, the expected value increases with the increase in gross sales. It can be concluded that the relationship is positive between the objective function and gross sales. An increase in gross sales (variable) will increase the value of the objective function and vice-versa. 2. Fixed costs: Based on the given graph, the expected value decreases with the increase in fixed costs. It can be concluded that the relationship is negative between the objective function and fixed costs. An increase in fixed costs will decrease the value of the objective function and vice-versa.