Financial The Certified Internal Auditor-Part3 New(CIA-III) CIA-III-2012 Exam Questions in PDF

Free Financial CIA-III-2012 Dumps Questions (page: 52)

An account executive has just designed a Monte Carlo model to estimate the costs of a particular type of project. Validating the model could include all except:

  1. Checking for errors in the computer programming.
  2. Checking that assumed probability distributions are reasonable.
  3. Comparing test results with previously validated models.
  4. Applying the model.

Answer(s): D

Explanation:

The Monte Carlo technique is used in a simulation to generate the individual values for a random value. An essential step in the simulation procedure is to validate the mathematical model used. This process involves not only searching for errors but also verifying the assumptions. It also should provide some assurance that the results of the experiment will be realistic. This assurance is often obtained using historical data. If the model gives results equivalent to what actually happened, the model is historically valid. There is still some risk, however, that changes could make the model invalid for the future. The model should not be implemented until this validation process is complete.



A large fishing operation has information on the interval, time, and probabilities of shrimp schools staying beneath their fishing boats. In order to use this information to predict when and where to send their boats, which of the following techniques should be used?

  1. Simulation.
  2. Least squares.
  3. Queuing theory.
  4. Exponential smoothing.

Answer(s): A

Explanation:

Simulation Monte Carlo simulation) is a technique for experimenting with logical/mathematical models using a computer. Despite the power of mathematics, many problems cannot be solved by known analytical methods because of the behavior of the variables and the complexity of their interactions. However, the performance of a quantitative model under uncertainty may be investigated by randomly selecting values for each variable in the model based on its probability distribution) and then calculating the value of the solution. If this process is performed many times, the distribution of results from the model will be obtained.



Which of the following is not true about simu-lation models?

  1. They are deterministic in nature.
  2. The may involve sampling.
  3. They mathematically estimate what actual performance would be.
  4. They emulate stochastic systems.

Answer(s): A

Explanation:

Simulation is a technique for experimenting with logical/mathematical models using a computer. The simulation procedure has five steps: define the objectives, formulate the model, validate the model, design the experiment, and conduct the simulation and evaluate the results. A simulation uses the laws of probability to generate values for random variables.
Thus, simulation models are probabilistic, not deterministic.



A cost-volume-profit model developed in a dynamic environment determined that the estimated parameters used may vary between limits. Subsequent testing of the model with respect to all possible values of the estimated parameters is termed:

  1. A sensitivity analysis.
  2. Statistical estimation.
  3. Statistical hypothesis testing.
  4. A time-series study.

Answer(s): A

Explanation:

After a problem has been formulated into any mathematical model, it may be subjected to sensitivity analysis. Sensitivity analysis is a method for studying the effects of changes in one or more variables on the results of a decision model.



An investment company is attempting to allocate its available funds between two investment alternatives, stocks and bonds, which differ in terms of expected return and risk. The company would like to minimize its risk while earning an expected return of at least 10% and investing no more than 70% in either of the investment alternatives. An appropriate technique for allocating its funds between stocks and bonds is:

  1. Linear programming.
  2. Capital budgeting.
  3. Differential analysis.
  4. Queuing theory.

Answer(s): A

Explanation:

Linear programming is a mathematical technique for planning resource allocation that optimizes a given objective function that is subject to certain constraints. In this case, the maximum investment is constrained by a 70% limit on either investment choice.



Share your comments for Financial CIA-III-2012 exam with other users:

A
anonymous
1/11/2024 4:50:00 AM

good questions

A
Anjum
9/23/2023 6:22:00 PM

well explained

T
Thakor
6/7/2023 11:52:00 PM

i got the full version and it helped me pass the exam. pdf version is very good.

S
sartaj
7/18/2023 11:36:00 AM

provide the download link, please

L
loso
7/25/2023 5:18:00 AM

please upload thank.

P
Paul
6/23/2023 7:12:00 AM

please can you share 1z0-1055-22 dump pls

E
exampei
10/7/2023 8:14:00 AM

i will wait impatiently. thank youu

P
Prince
10/31/2023 9:09:00 PM

is it possible to clear the exam if we focus on only these 156 questions instead of 623 questions? kindly help!

A
Ali Azam
12/7/2023 1:51:00 AM

really helped with preparation of my scrum exam

J
Jerman
9/29/2023 8:46:00 AM

very informative and through explanations

J
Jimmy
11/4/2023 12:11:00 PM

prep for exam

A
Abhi
9/19/2023 1:22:00 PM

thanks for helping us

M
mrtom33
11/20/2023 4:51:00 AM

i prepared for the eccouncil 350-401 exam. i scored 92% on the test.

J
JUAN
6/28/2023 2:12:00 AM

aba questions to practice

L
LK
1/2/2024 11:56:00 AM

great content

S
Srijeeta
10/8/2023 6:24:00 AM

how do i get the remaining questions?

J
Jovanne
7/26/2022 11:42:00 PM

well formatted pdf and the test engine software is free. well worth the money i sept.

C
CHINIMILLI SATISH
8/29/2023 6:22:00 AM

looking for 1z0-116

P
Pedro Afonso
1/15/2024 8:01:00 AM

in question 22, shouldnt be in the data (option a) layer?

P
Pushkar
11/7/2022 12:12:00 AM

the questions are incredibly close to real exam. you people are amazing.

A
Ankit S
11/13/2023 3:58:00 AM

q15. answer is b. simple

S
S. R
12/8/2023 9:41:00 AM

great practice

M
Mungara
3/14/2023 12:10:00 AM

thanks to this exam dumps, i felt confident and passed my exam with ease.

A
Anonymous
7/25/2023 2:55:00 AM

need 1z0-1105-22 exam

N
Nigora
5/31/2022 10:05:00 PM

this is a beautiful tool. passed after a week of studying.

A
Av dey
8/16/2023 2:35:00 PM

can you please upload the dumps for 1z0-1096-23 for oracle

M
Mayur Shermale
11/23/2023 12:22:00 AM

its intresting, i would like to learn more abouth this

J
JM
12/19/2023 2:23:00 PM

q252: dns poisoning is the correct answer, not locator redirection. beaconing is detected from a host. this indicates that the system has been infected with malware, which could be the source of local dns poisoning. location redirection works by either embedding the redirection in the original websites code or having a user click on a url that has an embedded redirect. since users at a different office are not getting redirected, it isnt an embedded redirection on the original website and since the user is manually typing in the url and not clicking a link, it isnt a modified link.

F
Freddie
12/12/2023 12:37:00 PM

helpful dump questions

D
Da Costa
8/25/2023 7:30:00 AM

question 423 eigrp uses metric

B
Bsmaind
8/20/2023 9:22:00 AM

hello nice dumps

B
beau
1/12/2024 4:53:00 PM

good resource for learning

S
Sandeep
12/29/2023 4:07:00 AM

very useful

K
kevin
9/29/2023 8:04:00 AM

physical tempering techniques

AI Tutor 👋 I’m here to help!