CEP Risk Analysis & Value Engineering 2

Question 1

Which Monte Carlo simulation output metric represents the probability that a project will be completed at or below a specific cost?

Accepted Answer

Cumulative distribution function (CDF)

Answer

The CDF from Monte Carlo simulation shows the cumulative probability of achieving a cost at or below each value on the x-axis.

Question 2

In value engineering, the 'worth' of a function is best defined as:

Accepted Answer

The lowest cost to reliably perform the function

Answer

In VE methodology, worth is defined as the least cost to reliably accomplish a required function.

Question 3

A risk register entry shows a risk with probability 0.30 and impact of $80,000. What is the expected monetary value (EMV)?

Accepted Answer

$24,000

Answer

EMV = Probability × Impact = 0.30 × $80,000 = $24,000.

Question 4

Which value engineering job plan phase involves generating creative alternatives without criticism?

Accepted Answer

Creative phase

Answer

The creative phase uses brainstorming to generate many alternatives without judging their merit.

Question 5

Sensitivity analysis in cost estimating is primarily used to:

Accepted Answer

Identify which input variables most affect the estimate outcome

Answer

Sensitivity analysis reveals which uncertain variables have the greatest influence on the total cost estimate.

(CEP) Certified Estimating Professional Practice Test