Probabilistic & Stochastic

Question 1

What are the three time estimates used when calculating the expected time/mean for probabilistic activity times?

Answer 1

Optimistic, Most Likely, Pessimistic

Question 2

What is the coefficient for “a” when calculating the expected time/mean for probabilistic activity times? [x]

Answer 2

1

Question 3

What is the denominator when calculating the expected time/mean for probabilistic activity times? [x]

Answer 3

6

Question 4

What is the coefficient for “b” when calculating the expected time/mean for probabilistic activity times? [x]

Answer 4

1

Question 5

What is the coefficient for “m” when calculating the expected time/mean for probabilistic activity times? [x]

Answer 5

4

Question 6

Analytical methods obtain exact solutions to highly [x] problems.

Answer 6

Stylized

Question 7

Monte Carlo simulation is a method by which approximate solutions are obtained to realistic (and therefore [x]) problems.

Answer 7

Complicated

Question 8

For What-If Analysis, you plug in different values for [x] cells and see what happens.

Answer 8

Uncertain

Question 9

For simulation, values for uncertain cells are selected [x] (and in an [y] manner).

Answer 9

Randomly, Unbiased

Question 10

Simulation can also assist in finding the optimal values of the [x] input variables.

Answer 10

Controllable

Question 11

Best-Case/Worst-Case Analysis is easy to do and bounds the [x], but it tells us nothing about the [y] of possible outcomes within the best and worst-case limits.

Answer 11

Outcomes, Distribution

Question 12

Decisions made using uncertain information often involve [x].

Answer 12

Risk

Question 13

A [x] variable is any variable whose value cannot be predicted or set with certainty.

Answer 13

Random

Question 14

Recognizing and analyzing uncertainty does not [x] uncertainty - nor does it cause uncertainty to [y].

Answer 14

Cause, Disappear

Question 15

A Random Number Generator is a mathematical function that randomly generates (returns) a value from a particular [x].

Answer 15

Probability Distribution

Question 16

Alternatives with the same expected value may involve very different levels of [x].

Answer 16

Risk

Question 17

Using expected values for uncertain cells tells us nothing about the [x] of the performance measure.

Answer 17

Variability

Question 18

When dealing with randomness, most real world business situations today are [x], but the decision models used to deal with them are [y].

Answer 18

Probabilistic, Deterministic