1. How is the need to have alternative scenarios related to uncertainty?2. Why is the continuing value estimate a less reliable forecast than the near-term (explicit) forecast?3. What differing factors must enter into generating a forecast for a chemical product firm such as Dow Chemical versus a retailing firm such as Wal-Mart?How is the need to have alternative scenarios related to uncertainty?Unceeteianiity is risk. Any program or process which is uncertain as to its performance is riskybecause the outcome is…