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

Free IIA IIA-CIA-Part3 Real Questions (page: 53)

A company is deciding whether to purchase an automated machine to manufacture one of its products. Expected net cash flows from this decision depend on several factors, interactions among those factors, and the probabilities associated with different levels of those factors.
The method that the company should use to evaluate the distribution of net cash flows from this decision and changes in net cash flows resulting from changes in levels of various factors is:

  1. Simulation and sensitivity analysis.
  2. Linear programming.
  3. Correlation analysis.
  4. Differential analysis.

Answer(s): A

Explanation:

Simulation is a technique used to describe the behavior of a real-world system over time. This technique usually employs a computer program to perform the simulation computations. Sensitivity analysis examines how outcomes change as the model parameters change.



In forecasting purchases of inventory for a firm, all of the following are useful except:

  1. Knowledge of the behavior of business cycles.
  2. Internal allocations of costs to different segments of the firm.
  3. Information on the seasonal variations in demand.
  4. Econometric modeling.

Answer(s): B

Explanation:

Internal allocations of costs relate to costs already incurred, that is, to sunk costs. Sunk costs are not relevant to decision making, for example, to forecasting future purchases.



A regression equation:

  1. Estimates the dependent variables.
  2. Encompasses factors outside the relevant range.
  3. Is based on objective and constraint functions.
  4. Estimates the independent variable.

Answer(s): A

Explanation:

Regression analysis is used to find an equation for the linear relationship among variables. The behavior of the dependent variable is explained in terms of one or more independent variables. Regression analysis is often used to estimate a dependent variable such as cost) given a known independent variable such as production).



The correlation coefficient that indicates the weakest linear association between two variables is:

  1. -0.73
  2. -0.11
  3. 0.12
  4. 0.35

Answer(s): B

Explanation:

The correlation coefficient can vary from -1 to +1. A -1 relationship indicates a perfect negative correlation, and a +1 relationship indicates a perfect positive correlation. A zero correlation coefficient would indicate no association between the variables. Thus, the correlation coefficient that is nearest to zero would indicate the weakest linear association. Of the options given in the question, the correlation coefficient that is nearest to zero is -0.11.



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 lies between -1.0 and +1.0. A value of zero indicates no linear relationship between the x and y variables. A value of +1.0 indicates a perfectly direct relationship, and a value of-1.0 indicates a perfectly inverse relationship.



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

S
Sarah
6/13/2023 1:42:00 PM

anyone use this? the question dont seem to follow other formats and terminology i have been studying im getting worried

S
Shuv
10/3/2023 8:19:00 AM

good questions

R
Reb974
8/5/2023 1:44:00 AM

hello are these questions valid for ms-102

M
Mchal
7/20/2023 3:38:00 AM

some questions are wrongly answered but its good nonetheless

S
Sonbir
8/8/2023 1:04:00 PM

how to get system serial number using intune

M
Manju
10/19/2023 1:19:00 PM

is it really helpful to pass the exam

L
LeAnne Hair
8/24/2023 12:47:00 PM

#229 in incorrect - all the customers require an annual review

A
Abdul SK
9/28/2023 11:42:00 PM

kindy upload

A
Aderonke
10/23/2023 12:53:00 PM

fantastic assessment on psm 1

S
SAJI
7/20/2023 2:51:00 AM

56 question correct answer a,b

R
Raj Kumar
10/23/2023 8:52:00 PM

thank you for providing the q bank

P
piyush keshari
7/7/2023 9:46:00 PM

true quesstions

B
B.A.J
11/6/2023 7:01:00 AM

i can´t believe ms asks things like this, seems to be only marketing material.

G
Guss
5/23/2023 12:28:00 PM

hi, could you please add the last update of ns0-527

R
Rond65
8/22/2023 4:39:00 PM

question #3 refers to vnet4 and vnet5. however, there is no vnet5 listed in the case study (testlet 2).

C
Cheers
12/13/2023 9:55:00 AM

sometimes it may be good some times it may be

S
Sumita Bose
7/21/2023 1:01:00 AM

qs 4 answer seems wrong- please check

A
Amit
9/7/2023 12:53:00 AM

very detailed explanation !

F
FisherGirl
5/16/2022 10:36:00 PM

the interactive nature of the test engine application makes the preparation process less boring.

C
Chiranthaka
9/20/2023 11:15:00 AM

very useful.

S
SK
7/15/2023 3:51:00 AM

complete question dump should be made available for practice.

G
Gamerrr420
5/25/2022 9:38:00 PM

i just passed my first exam. i got 2 exam dumps as part of the 50% sale. my second exam is under work. once i write that exam i report my result. but so far i am confident.

K
Kudu hgeur
9/21/2023 5:58:00 PM

nice create dewey stefen

A
Anorag
9/6/2023 9:24:00 AM

i just wrote this exam and it is still valid. the questions are exactly the same but there are about 4 or 5 questions that are answered incorrectly. so watch out for those. best of luck with your exam.

N
Nathan
1/10/2023 3:54:00 PM

passed my exam today. this is a good start to 2023.

1
1
10/28/2023 7:32:00 AM

great sharing

A
Anand
1/20/2024 10:36:00 AM

very helpful

K
Kumar
6/23/2023 1:07:00 PM

thanks.. very helpful

U
User random
11/15/2023 3:01:00 AM

i registered for 1z0-1047-23 but dumps qre available for 1z0-1047-22. help me with this...

K
kk
1/17/2024 3:00:00 PM

very helpful

R
Raj
7/24/2023 10:20:00 AM

please upload oracle 1z0-1110-22 exam pdf

B
Blessious Phiri
8/13/2023 11:58:00 AM

becoming interesting on the logical part of the cdbs and pdbs

L
LOL what a joke
9/10/2023 9:09:00 AM

some of the answers are incorrect, i would be wary of using this until an admin goes back and reviews all the answers

M
Muhammad Rawish Siddiqui
12/9/2023 7:40:00 AM

question # 267: federated operating model is also correct.

AI Tutor 👋 I’m here to help!