CEP Risk Analysis & Value Engineering 3

Question 1

Which technique assigns three time/cost estimates (optimistic, most likely, pessimistic) to model uncertainty in project variables?

Accepted Answer

Three-point estimating (PERT)

Answer

Three-point estimating uses optimistic, most likely, and pessimistic values to calculate a weighted average and measure uncertainty.

Question 2

A value engineering study identifies a component with a cost-to-worth ratio of 3.5. This indicates:

Accepted Answer

The component costs 3.5 times more than its function is worth

Answer

A cost-to-worth ratio greater than 1 means the current cost exceeds the worth of the function, signaling a VE opportunity.

Question 3

Which statistical measure best describes the dispersion of possible cost outcomes in a risk analysis?

Accepted Answer

Standard deviation

Answer

Standard deviation quantifies the spread or variability of outcomes around the mean, making it the primary measure of dispersion.

Question 4

In a tornado diagram used for sensitivity analysis, the longest bar represents:

Accepted Answer

The variable with the greatest impact on cost

Answer

In a tornado diagram, bars are sorted by length so the longest bar at the top represents the most influential variable.

Question 5

Value engineering is most effectively applied during which project phase?

Accepted Answer

Conceptual or early design phase

Answer

VE savings potential is highest during early design when changes are least costly and most impactful.

(CEP) Certified Estimating Professional Practice Test