IIA Certified Internal Auditor - Part 3, Business Analysis and Information Technology IIA-CIA-Part3 Exam Questions in PDF

Free IIA IIA-CIA-Part3 Dumps Questions (page: 12)

Correlation is a term frequently used in conjunction with regression analysis and is measured by the value of the coefficient of correlation, r. The best explanation of the value r is that it:

  1. Is always positive.
  2. Interprets variances in terms of the independent variable.
  3. Ranges in size from negative infinity to positive infinity.
  4. Is a measure of the relative relationship between two variables.

Answer(s): D

Explanation:

The coefficient of correlation (r) measures the strength of the linear relationship between the dependent and independent variables. The magnitude of r is independent of the scales of measurement of x and y. The coefficient has a range of-1 to +1. A value of zero indicates no linear relationship between the x and y variables. A value of+1 indicates a perfectly direct relationship, and a value of --1 indicates a perfectly inverse relationship.



In preparing the annual profit plan for the coming year.


Based upon the data derived from the regression analysis, 420 maintenance hours in a month would mean the maintenance costs (rounded to the nearest US dollar) would be budgeted at:

  1. US$3,780
  2. US$3,600
  3. US$3,790
  4. US$3,746

Answer(s): D

Explanation:

Substituting the given data into the regression equation results in a budgeted cost of US $3,746 (rounded to the nearest US dollar).
y = a + bx
= 684.65 + 7.2884(420)
= US $3,746



In preparing the annual profit plan for the coming year.


What is the percentage of the total variance that can be explained by the regression equation?

  1. 99.724%
  2. 69.613%
  3. 80.982%
  4. 99.862%

Answer(s): A

Explanation:

The coefficient of determination (r2) measures the percentage of the total variance in cost that can be explained by the regression equation. If the coefficient of determination is .99724, 99.724% of the variance is explained by the regression equation. Thus, the values in the regression equation explain virtually the entire amount of total cost.



The internal auditor of a bank has developed a multiple regression model that has been used for a number of years to estimate the amount of interest income from commercial loans. During the current year, the auditor applies the model and discovers that the r2 value has decreased dramatically, but the model otherwise seems to be working.
Which of the following conclusions is justified by the change?

  1. Changing to a cross-sectional regression analysis should cause r2to increase.
  2. Regression analysis is no longer an appropriate technique to estimate interest income.
  3. Some new factors not included in the model are causing interest income to change.
  4. A linear regression analysis would increase the model's reliability.

Answer(s): C

Explanation:

The coefficient of determination (r2) is the amount of variation in the dependent variable (interest income) that is explained by the independent variables. In this case, less of the change in interest income is explained by the model. Thus, some other factor must be causing interest income to change. This change merits audit investigation.



What does the following scatter gram suggest?

  1. Sales revenue is inversely related to training costs.
  2. The training program is not effective.
  3. Training costs do not affect sales revenue.
  4. Several data points are incorrectly plotted.

Answer(s): C

Explanation:

Internal auditors may use scatter diagrams to detect misstated data, relationships among variables, and unusual operating results. A scatter diagram is a graph of data points.
When the points have a systematic relationship, the independent (x) variable and dependent (y) variable are likely to be correlated; i.e.. the value of one variable is a predictor of the value of the other. However, the variables in this scatter gram are clearly uncorrelated because training costs do not predict sales.



Share your comments for IIA IIA-CIA-Part3 exam with other users:

S
s_123
8/12/2023 4:28:00 PM

do we need c# coding to be az204 certified

B
Blessious Phiri
8/15/2023 3:38:00 PM

excellent topics covered

M
Manasa
12/5/2023 3:15:00 AM

are these really financial cloud questions and answers, seems these are basic admin question and answers

N
Not Robot
5/14/2023 5:33:00 PM

are these comments real

K
kriah
9/4/2023 10:44:00 PM

please upload the latest dumps

E
ed
12/17/2023 1:41:00 PM

a company runs its workloads on premises. the company wants to forecast the cost of running a large application on aws. which aws service or tool can the company use to obtain this information? pricing calculator ... the aws pricing calculator is primarily used for estimating future costs

M
Muru
12/29/2023 10:23:00 AM

looks interesting

T
Tech Lady
10/17/2023 12:36:00 PM

thanks! that’s amazing

M
Mike
8/20/2023 5:12:00 PM

the exam dumps are helping me get a solid foundation on the practical techniques and practices needed to be successful in the auditing world.

N
Nobody
9/18/2023 6:35:00 PM

q 14 should be dmz sever1 and notepad.exe why does note pad have a 443 connection

M
Muhammad Rawish Siddiqui
12/4/2023 12:17:00 PM

question # 108, correct answers are business growth and risk reduction.

E
Emmah
7/29/2023 9:59:00 AM

are these valid chfi questions

M
Mort
10/19/2023 7:09:00 PM

question: 162 should be dlp (b)

E
Eknath
10/4/2023 1:21:00 AM

good exam questions

N
Nizam
6/16/2023 7:29:00 AM

I have to say this is really close to real exam. Passed my exam with this.

P
poran
11/20/2023 4:43:00 AM

good analytics question

A
Antony
11/23/2023 11:36:00 AM

this looks accurate

E
Ethan
8/23/2023 12:52:00 AM

question 46, the answer should be data "virtualization" (not visualization).

N
nSiva
9/22/2023 5:58:00 AM

its useful.

R
Ranveer
7/26/2023 7:26:00 PM

Pass this exam 3 days ago. The PDF version and the Xengine App is quite useful.

S
Sanjay
8/15/2023 10:22:00 AM

informative for me.

T
Tom
12/12/2023 8:53:00 PM

question 134s answer shoule be "dlp"

A
Alex
11/7/2023 11:02:00 AM

in 72 the answer must be [sys_user_has_role] table.

F
Finn
5/4/2023 10:21:00 PM

i appreciated the mix of multiple-choice and short answer questions. i passed my exam this morning.

A
AJ
7/13/2023 8:33:00 AM

great to find this website, thanks

C
Curtis Nakawaki
6/29/2023 9:11:00 PM

examination questions seem to be relevant.

U
Umashankar Sharma
10/22/2023 9:39:00 AM

planning to take psm test

E
ED SHAW
7/31/2023 10:34:00 AM

please allow to download

A
AD
7/22/2023 11:29:00 AM

please provide dumps

A
Ayyjayy
11/6/2023 7:29:00 AM

is the answer to question 15 correct ? i feel like the answer should be b

B
Blessious Phiri
8/12/2023 11:56:00 AM

its getting more technical

J
Jeanine J
7/11/2023 3:04:00 PM

i think these questions are what i need.

A
Aderonke
10/23/2023 2:13:00 PM

helpful assessment

T
Tom
1/5/2024 2:32:00 AM

i am confused about the answers to the questions. do you know if the answers are correct?

AI Tutor 👋 I’m here to help!