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Free CMA Exam Braindumps (page: 169)

Page 169 of 336
PDF with 1336 Questions
View Related Case Study

A decision maker is operating in an environment in which all the facts surrounding a decision are known exactly, and each alternative is associated with only one possible outcome. The environment is known as

  1. Certainly.
  2. Risk.
  3. Uncertainly.
  4. Probability.

Answer(s): A

Explanation:

The less the variability of the future results of a decision, the smaller the risk involved. If each choice is associated with only one possible outcome, no variability exists. Such a condition is one of certainly (zero variance).



View Related Case Study

The use of a decision tree is appropriate for decision making under conditions of

  1. Uncertainty and risk.
  2. Uncertainly and subjective likelihoods.
  3. Certainty'.
  4. Risk.

Answer(s): D

Explanation:

Decision tree analysis is used when various options of certainty', their consequences, and the probabilities of those consequences can be ascertained with a high degree of confidence. Under conditions of uncertainty', however, probabilities are unknown.



View Related Case Study

The modeling technique to be used for situations involving a sequence of events with several possible outcomes associated with each event is

  1. Queuing theory.
  2. Simulation.
  3. Linear programming.
  4. Decision tree analysis.

Answer(s): D

Explanation:

Decision tree analysis is useful when the most beneficial series of decisions is to be chosen. The possible decisions for each decision point, the events that might follow from each decision, the probabilities of these events, and the quantified outcomes should be known.



View Related Case Study

Which of the following statements is/are true about choosing a course of action?

I). Future cash flows of the potential courses of action must be compared.
II). Qualitative factors must be considered.
Ill). Nonfinancial quantitative factors do not have to be considered.

  1. l only.
  2. l and ll
  3. Ill only.
  4. l, ll, and lll.

Answer(s): B

Explanation:

The selection of the best available solution is the objective of the decision-making process. The choice involves not only comparing the future cash flows of the potential courses of action1 but also considering qualitative and nonfinancial quantitative factors. Qualitative factors include relationships with employees, suppliers, and customers. Nonfinancial quantitative factors include rate of defective output and manufacturing lead time.



Page 169 of 336



Post your Comments and Discuss Financial CMA exam with other Community members:

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Good to learn from here
INDIA
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Tacy commented on October 18, 2023
Awesome content
Anonymous
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Georgodino commented on April 29, 2021
The study package is helpful in passing your exam since the practice questions are copied from real exam. But in order to learn the modules in details you need books.
ARGENTINA
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Joe commented on May 16, 2019
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Anonymous
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emad hamdy commented on May 03, 2019
great for passing not so good for learning. Just use it as cheat sheet.
UNITED STATES
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Amer Alnajjar commented on March 11, 2019
Still the test is under process
Anonymous
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Exam Passer commented on December 06, 2018
I wrote the exam yesterday and it was a great success. Good job guys.
UNITED ARAB EMIRATES
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Easy way to download
Anonymous
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Harshavardhan Yedla commented on October 02, 2017
good
UNITED STATES
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JORDAN
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