Steve is fairly cautious when analyzing a new project and thus he projects the most optimistic, the most realistic, and the most pessimistic outcome that can reasonably be expected. Which type of analysis is he using?

Scenario analysis

Explanation:

Scenario analysis is widely used to predict changes in the value of an asset in response to an adverse event, and can also be used to analyze a worst-case theoretical situation. Challenging one's future expectations, and making assumptions based on the plans and decisions on the most likely scenarios. Thus, it is is a method of analyzing and assessing possible events that could occur in the future, taking into account various feasible findings or outcomes.