Common Exam Questions

Question 1

Pre-Posterior Analysis Considerations

Answer 1

• Does the value of the information outweigh the cost of the test?
• Consequences of the decision
• Accuracy of test results

Question 2

Misconceptions of labeling a flood a ‘100-year event’

Answer 2

Implies that it will occur every 100 years

Question 3

Principals of Asset Management Systems

Answer 3

• Policy-driven
• Performance-based
• Options evaluated
• Clear accountability

Question 4

Limitations of the Analytical Hierarchy Process

Answer 4

• Participants can view as a black box
• Labour and time intensive
• Can require many iterations to get a consistent matrix
• Pairwise comparisons become less accurate with increasing criteria

Question 5

Limitations of Strategic Plan in Asset Management

Answer 5

• Does not account for black swan events
• Infrastructure asset needs come in waves
• Models only as good as data available
• Not flexible, contextual situations can change very rapidly

Question 6

Difference between Monte Carlo and Latin Hypercube Sampling

Answer 6

Monte Carlo: Sample points created without considering previous samples, not required to know amount of data points required
Latin Hypercube: Sample points created using a grid, number of samples decided at start

Question 7

Hawthorne Effect

Answer 7

Individuals change their behavior on account of observation from others

Question 8

Allais’s Paradox

Answer 8

• Observation that humans deviate from logical utility theory
• Humans assume the prospect of a loss more significant than the potential utility gain

Question 9

NPV Method

Answer 9

Accept any project with a positive NPV

Question 10

Payback Method

Answer 10

Accept a project with a payback period less than the stipulated time frame

Question 11

Scientific Management Method Principles

Answer 11

• Scientifically optimise work routines
• Scientifically select and train workers
• Ensure routines are followed
• Managers and workers to use scientific methods

Question 12

Disadvantages of the Scientific Management Method

Answer 12

• Work becomes monotonous
• Worker measured off output alone
• Low job satisfaction

Question 13

Advantages/Disadvantages of Delphi Method

Answer 13

Advantages:
- Group decisions preferable to individual judgment
- Uses expert opinion
- Minimises variance
Disadvantages:
- Requires a panel of experts
- Group bias can influence opinions

Question 14

Advantages/Disadvantages of Top-Down Estimation Approach

Answer 14

Advantages:
- Quick and labour efficient
- Gives preliminary estimate
- Shows project viability
Disadvantages:
- Contains 30% error
- No account for labour/resources
- Relies on similar projects

Question 15

Advantages/Disadvantages of Bottom-up Estimation Approach

Answer 15

Advantages:
- Only 5% error
- Used to create SOV
- Allows tender submissions
Disadvantages:
- Labour/time intensive

Question 16

Blanchard’s Situational Leadership Theory

Answer 16

1. High Directive, Low Supporting (Directing)
2. High Directive, High Supporting (Coaching)
3. Low Directive, High Supporting (Supporting)
4. Low Directive, Low Supporting (Delegating)

Question 17

What does the consistency ratio show?

Answer 17

• Accuracy of pairwise comparisons
• Compares consistency index to the random index
• Show how performance measures vary