Question 1

The Extract Data in the Analyze group of Crystal Ball,allows an individual to build customized reports for all or a subset of assumptions and output information.

Accepted Answer

The answer of The Extract Data in the Analyze group...

Question 2

In the analytical approach,if more than one critical path exists in a project management model,the path with the ________ is used.
A)largest expected activity time
B)smallest expected project completion time
C)smallest variance of activity time
D)largest variance of the distribution

Accepted Answer

The answer of In the analytical approach,if more than one...

Question 3

In Crystal Ball,the Correlation Matrix tool allows an individual to define correlations between groups of assumptions in a model.

Accepted Answer

The Correlation Matrix tool in Crystal Ball allows users to define correlations between groups of assumptions in a model.

Question 4

Explain in brief the functions of Crystal Ball.

Accepted Answer

The answer of Explain in brief the functions of Crystal...

Question 5

Describe the procedure used to define assumptions in Crystal Ball.

Accepted Answer

The answer of Describe the procedure used to define assumptions...

Question 6

________ is an analytical method that determines the probabilities of the project completion times in project management models by assuming that the expected activity times define the critical path and that the distribution of project completion time is normal using the central limit theorem.
A)Program Estimation and Research Technique
B)Project Evaluation and Revise Technique
C)Program Evaluation and Review Technique
D)Project Estimation and Risk Technique

Accepted Answer

The description mentions Program Evaluation and Review Technique (PERT), which is an analytical method used in project management to determine the probabilities of project completion times. PERT assumes that the expected activity times define the critical path and that the distribution of project completion time is normal using the central limit theorem. The other answer choices are not commonly used analytical methods in project management.

Question 7

Briefly describe the procedure to run a simulation.

Accepted Answer

The answer of Briefly describe the procedure to run a...

Question 8

Risk analysis seeks to examine the impacts of uncertainty in the estimates and their potential interaction with one another on the output variable of interest.

Accepted Answer

Risk analysis does indeed seek to examine the impacts of uncertainty and their potential interaction on the output variable of interest.

Question 9

Optimum consulting is concerned about the maximum project time in one of their project management models.Using simulation,they found an estimate of the maximum project time to be about 364 days.To better understand the variability,Optimum consulting has used ________ that estimated the accuracy of the forecast statistics shown in the statistics view of the simulation results.
A)Scenario Analysis tool
B)Decision Table tool
C)2D Simulation tool
D)Bootstrap tool

Accepted Answer

The Bootstrap tool is used for estimating the accuracy of forecast statistics by resampling the original data multiple times. It helps in determining the accuracy of the maximum project time estimate and provides insights into the variability of the results. The other tools mentioned (scenario analysis, decision table, and 2D simulation) are not specifically designed for this purpose.

Question 10

In Crystal Ball,the Forecast Charts show the sampled random variates superimposed over the theoretical distributions chosen as assumptions.

Accepted Answer

The answer of In Crystal Ball,the Forecast Charts show the...

Question 11

If several cells in the model have the same assumptions,you may use the Copy and Paste commands in the Define group within the Crystal Ball ribbon.

Accepted Answer

The Copy and Paste commands in the Define group within the Crystal Ball ribbon can be used to duplicate assumptions across multiple cells in the model.

Question 12

In Crystal Ball,uncertain inputs are called forecasts.

Accepted Answer

In Crystal Ball, uncertain inputs are referred to as assumptions, not forecasts. Forecasts are the outputs or results of the simulation.

Question 13

Define risk and risk analysis.

Accepted Answer

The answer of Define risk and risk analysis....

Question 14

In Crystal Ball,the output variables in which we are interested are called assumptions.

Accepted Answer

In Crystal Ball, the output variables that are being modeled or predicted are called output variables, not assumptions. Assumptions are the input variables that are used to create the model.

Question 15

Running the Tornado Charts tool before the Monte Carlo simulation helps in ________.
A)specifying correlation coefficients that define dependencies between assumptions
B)fitting continuous distributions from the empirical distribution of the data
C)screening out assumptions that would have little impact on the forecast
D)estimating the sampling distribution of any statistic,even an unconventional one such as the minimum or maximum endpoint of a forecast

Accepted Answer

Running the Tornado Charts tool before the Monte Carlo simulation helps in screening out assumptions that would have little impact on the forecast. This allows for a more efficient use of computational resources during the Monte Carlo simulation by avoiding the simulation of irrelevant assumptions. Options A, B, and D relate to tasks that are typically done during or after the Monte Carlo simulation.

Question 16

In Crystal Ball,Latin Hypercube sampling results in a more even distribution of forecast values than Monte Carlo forecasting because it samples the entire range of the distribution in a more consistent manner.

Accepted Answer

Latin Hypercube sampling divides the range of values for each input variable into equal intervals and then samples randomly within each interval. This results in a more even distribution of forecast values compared to Monte Carlo forecasting, where values are sampled randomly without regard to their distribution. This makes Latin Hypercube sampling a more accurate and efficient method for forecasting in Crystal Ball.

Question 17

List the steps used in Crystal Ball to run a Monte Carlo Simulation.

Accepted Answer

The answer of List the steps used in Crystal Ball...

Question 18

In the analytical approach,the probabilities of completing the project within a certain time are computed assuming that ________.
A)the expected project completion time is the product of the expected activity times along the critical path,which is found using the expected activity times
B)the variance of the distribution is the sum of the variances of those activities along the critical path,which is found using the expected activity times
C)the variance of the distribution is the sum of the variances of those activities along the critical path,which is found using the variances of activity times
D)the distribution of project completion times is not known

Accepted Answer

The answer of In the analytical approach,the probabilities of completing...

Question 19

In Crystal Ball,Monte Carlo sampling divides each assumption's probability distribution into intervals of equal probability and generates an assumption value randomly within each interval.

Accepted Answer

The answer of In Crystal Ball,Monte Carlo sampling divides each...

Question 20

Assumption cells in Crystal Ball can be defined for formula,nonnumeric,or blank cells.

Accepted Answer

Assumption cells in Crystal Ball are defined for numeric cells only, as they are used for running simulations based on varying numerical inputs. Nonnumeric or blank cells cannot be used as assumption cells.

Quiz 10: Decision Models With Uncertainty and Risk