When comparing scenarios, what can be used as targets for the scorecard?

Using previous scenario results or company annual plan data as targets for the scorecard is a sound approach because it grounds the comparison in actual performance metrics or planned objectives that the organization has set. This type of data reflects historical performance and strategic planning, allowing for a more meaningful analysis of new scenarios against established benchmarks or outcomes.

By utilizing previous scenario results, analysts can identify trends and improvements over time, enabling more informed decision-making. Additionally, referencing the company’s annual plan data ensures that the scenarios being evaluated align with the broader strategic goals of the organization. This alignment is crucial for assessing whether new scenarios are likely to deliver favorable outcomes compared to what has been previously planned or achieved.

The other options may introduce inaccuracies or irrelevant benchmarks for comparison, which could lead to misguided conclusions or assessments regarding the new scenarios being evaluated. Therefore, relying on actual historical and planned data offers the most relevant and reliable context for scoring and comparing different scenarios.