IIA-CIA-Part2 Practice Test

Five brand managers in a consumer products company met to determine how well certain
promotions had performed. The data that they needed to analyze consisted of approximately 50
gigabytes of daily point-of-sale (POS) data for each month. The brand managers tried to download
the POS data from the mainframe and import it into microcomputer spreadsheets for analysis.
Their efforts were unsuccessful, most likely because oF.

A.

The complexity of the mainframe data structure and the large volume of data.

B.

The difficulty of establishing access privileges for each subset of the mainframe data.

C.

Inconsistencies in the mainframe data due to lack of integrity constraints on the data files.

D.

.Error-prone transmission links for downloading the data from the mainframe data files.

After completing a net present value (NPV) calculation on a proposed project, an analyst explores
the change in NPV with changes in the interest rate. This additional analysis is referred to as:

A.

Decision analysis.

B.

Simulation.

C.

Sensitivity analysis.

D.

Variance analysis.

A company used simple regression analysis to analyze maintenance costs against machine hours
(MH) for a 26-week period when the plant was in full operation. The regression yielded the
following estimated cost function:
Maintenance Cost = $60 + $0.25/MH
The regression analysis also generated a coefficient of determination (R2), or goodness of fit, of
0.85. Which of the following statements regarding this regression analysis is appropriate?

A.

This regression can be used to determine the maintenance cost for any period at any activity
level by substituting the machine hours in the equation.

B.

The $60 component represents the best estimate of fixed maintenance costs for the company
in a shutdown situation.

C.

The $0.25 component is the slope coefficient of the cost estimate and represents the average
variable maintenance cost per machine hour.

D.

The coefficient of determination of R2 = 0.85 indicates that the goodness of fit is poor because
the value is close to the maximum value of one

Which of the following techniques could be used to evaluate the effectiveness of changes to the
operation of a computer help line?

A.

Benchmarking.

B.

Baseline measurements.

C.

Walk-throughs.

D.

Quality circles.

One method for dealing with the uncertainty of demand forecasts used in linear programming is to
extend the model solution to include.

A.

Sensitivity analysis.

B.

Goal seeking.

C.

Branch-and-bound solutions.

D.

Nonlinear programming.