CEP Risk Analysis & Value Engineering 4

Question 1

In value engineering function analysis, a 'basic function' is defined as:

Accepted Answer

The primary purpose that makes the item worth having

Answer

The basic function is the essential purpose of the item—removing it would make the item worthless or defeat its design intent.

Question 2

Which correlation coefficient value indicates that two risk variables are perfectly positively correlated in a Monte Carlo model?

Accepted Answer

+1.0

Answer

A correlation coefficient of +1.0 means the two variables move perfectly in the same direction, maximizing combined variance.

Question 3

A contingency reserve addresses which type of risk?

Accepted Answer

Known unknowns (identified risks)

Answer

Contingency reserve covers identified but uncertain risk events (known unknowns), while management reserve covers unknown unknowns.

Question 4

The FAST diagram in value engineering is used to:

Accepted Answer

Map the logical relationships between functions

Answer

A Function Analysis System Technique (FAST) diagram shows how and why functions relate to each other in a hierarchical logic map.

Question 5

When a risk analysis uses a triangular distribution with values of $100K (optimistic), $200K (most likely), and $500K (pessimistic), the mean is approximately:

Accepted Answer

$267K

Answer

For a triangular distribution, mean = (optimistic + most likely + pessimistic) / 3 = ($100K + $200K + $500K) / 3 ≈ $267K.

(CEP) Certified Estimating Professional Practice Test

(CEP) Certified Estimating Professional Practice Test

CEP Risk Analysis & Value Engineering 4