ARM 401 Miscellaneous: Questions With A+ Solutions
Air-Freight Company wants to use failure mode and effects analysis (FMEA) to
analyze its systems, subsystems, components, sub-assemblies, and parts.
Level 1 is the overall system for shipping freight. Level 2 is the system
segments, with the prime items (air freight hubs, schedulers, and logistics)
designated as Level 3. Level 4 is the subsystems (local freight handlers,
package sorters, etc.). Level 5 is the hardware and parts (forklifts, conveyor
belts, planes, and delivery vans, etc.). In FMEA, these various systems and
subsystems are called
A. Critical levels.
B. Indenture levels.
C. Complexity levels.
D. Risk priority levels. Right Ans - B. Indenture levels
Which one of the following statements is correct with respect to continuous
probability distributions?
A. One way of presenting a continuous probability distribution is to divide the
distribution into a countable number of bins.
B. There are a finite number of possible outcomes in a continuous probability
distribution.
C. They are typically used for loss frequency analysis rather than severity
analysis.
D. They are most effectively illustrated using tables and pie charts. Right
Ans - A. One way of presenting a continuous probability distribution is to
divide the distribution into a countable number of bins.
Which one of the following is a major responsibility of corporate directors?
A. To manage investments and disbursements of the corporation's assets
B. To perpetuate a competent board through regular elections
C. To establish the procedures and operational goals for each department
D. To create the proper annual and interim reports for shareholders Right
Ans - B. To perpetuate a competent board through regular elections
The risk management department at Computer Hardware Company uses risk
maps to graph and analyze the risks faced by the company. One area of special
concern to the risk management team is the difference between residual risk
and optimum risk. This difference represents
A. The risk that cannot be altered and is retained by the firm.
,B. The potential risk that the organization does not currently face, but could
face if conditions change
C. The risk that is handled, by default, through avoidance.
D. The risk treatment opportunity to further reduce risk. Right Ans - D. The
risk treatment opportunity to further reduce risk.
Decision tree analysis and event tree analysis are similar in a number of ways,
but differ in their
A. Purpose.
B. Process.
C. Appearance.
D. Approach. Right Ans - A. Purpose.
After a month in which three employees were seriously injured at company
paper mills, Ashley, the risk manager of Bright White Paper Company, wanted
some answers about the causes of employee injuries. Ashley independently
contacted the plant manager and foreman at each of the company's plants. She
asked each person to complete a confidential questionnaire regarding safety
procedures. After receiving the responses to the questionnaire, Ashley
summarized the results and asked the same questions again instructing each
person to consider revising their responses based on the initial questionnaire
results. The analysis revealed that new workers were not being properly
trained and that a lax attitude toward safety was present at the majority of the
plants. The team approach to risk identification Ashley employed is called
A. The Delphi technique.
B. Scenario analysis.
C. SWOT analysis.
D. HAZOP analysis Right Ans - A. The Delphi technique.
Which one of the following is a major benefit that blockchain technology
provides to holistic risk management?
A. Blockchain technology allows organizations to share data through wireless
internet and networking services.
B. Blockchain technology can monitor driving habits by measuring
acceleration, speed, braking, and distance traveled.
C. Blockchains can monitor things such as heat, moisture, noise, and air
quality.
D. Because of their security, blockchains can eliminate the need to verify the
accuracy of risk management data. Right Ans - D. Because of their security,
, blockchains can eliminate the need to verify the accuracy of risk management
data.
The purpose of fault tree analysis is to
A. Project consequences of some failure of a system component.
B. Quantify the probability of each possibility identified in the analysis.
C. Identify the various ways of interrupting the sequence of events leading to
system failure so that the failure itself can be prevented.
D. Provide an opportunity to discover and correct any defects in a product or
process while it is still in its early engineering phases. Right Ans - C.
Identify the various ways of interrupting the sequence of events leading to
system failure so that the failure itself can be prevented.
Tom, the regional manager at Westfork Mutual, has planned a community
service day for all employees. He has asked his two assistant managers, Julian
and Leah, to spread the word to other employees and encourage them to
attend. Based on centrality measures of the company's email traffic, Tom is
confident that Julian will spread the word to more employees more quickly
through email than will Leah. Tom's confidence is based on Julian's high score
in which one of the following centrality measures?
A. Degree
B. Betweenness
C. Association
D. Closeness Right Ans - D. Closeness
Home Appliance Company has decided to change its production method.
Previously, small teams of workers assembled washers, dryers, and
dishwashers. Under the new production method, an assembly-line will be
used, with some functions performed by robotics. Before making the change,
Home Appliance Company has created a team of experts from company
personnel to identify all of the risks inherent in the new production method
and to recommend measures to address these risks. The team will assemble in
a facilitated workshop and follow these steps:
Divide the production method into components
Review each component to identify risk
Identify causes and potential outcomes for each risk
Develop a solution for each risk.
This team approach is risk identification is called a
A. SWOT (strengths, weaknesses, opportunities, threats) analysis.
Air-Freight Company wants to use failure mode and effects analysis (FMEA) to
analyze its systems, subsystems, components, sub-assemblies, and parts.
Level 1 is the overall system for shipping freight. Level 2 is the system
segments, with the prime items (air freight hubs, schedulers, and logistics)
designated as Level 3. Level 4 is the subsystems (local freight handlers,
package sorters, etc.). Level 5 is the hardware and parts (forklifts, conveyor
belts, planes, and delivery vans, etc.). In FMEA, these various systems and
subsystems are called
A. Critical levels.
B. Indenture levels.
C. Complexity levels.
D. Risk priority levels. Right Ans - B. Indenture levels
Which one of the following statements is correct with respect to continuous
probability distributions?
A. One way of presenting a continuous probability distribution is to divide the
distribution into a countable number of bins.
B. There are a finite number of possible outcomes in a continuous probability
distribution.
C. They are typically used for loss frequency analysis rather than severity
analysis.
D. They are most effectively illustrated using tables and pie charts. Right
Ans - A. One way of presenting a continuous probability distribution is to
divide the distribution into a countable number of bins.
Which one of the following is a major responsibility of corporate directors?
A. To manage investments and disbursements of the corporation's assets
B. To perpetuate a competent board through regular elections
C. To establish the procedures and operational goals for each department
D. To create the proper annual and interim reports for shareholders Right
Ans - B. To perpetuate a competent board through regular elections
The risk management department at Computer Hardware Company uses risk
maps to graph and analyze the risks faced by the company. One area of special
concern to the risk management team is the difference between residual risk
and optimum risk. This difference represents
A. The risk that cannot be altered and is retained by the firm.
,B. The potential risk that the organization does not currently face, but could
face if conditions change
C. The risk that is handled, by default, through avoidance.
D. The risk treatment opportunity to further reduce risk. Right Ans - D. The
risk treatment opportunity to further reduce risk.
Decision tree analysis and event tree analysis are similar in a number of ways,
but differ in their
A. Purpose.
B. Process.
C. Appearance.
D. Approach. Right Ans - A. Purpose.
After a month in which three employees were seriously injured at company
paper mills, Ashley, the risk manager of Bright White Paper Company, wanted
some answers about the causes of employee injuries. Ashley independently
contacted the plant manager and foreman at each of the company's plants. She
asked each person to complete a confidential questionnaire regarding safety
procedures. After receiving the responses to the questionnaire, Ashley
summarized the results and asked the same questions again instructing each
person to consider revising their responses based on the initial questionnaire
results. The analysis revealed that new workers were not being properly
trained and that a lax attitude toward safety was present at the majority of the
plants. The team approach to risk identification Ashley employed is called
A. The Delphi technique.
B. Scenario analysis.
C. SWOT analysis.
D. HAZOP analysis Right Ans - A. The Delphi technique.
Which one of the following is a major benefit that blockchain technology
provides to holistic risk management?
A. Blockchain technology allows organizations to share data through wireless
internet and networking services.
B. Blockchain technology can monitor driving habits by measuring
acceleration, speed, braking, and distance traveled.
C. Blockchains can monitor things such as heat, moisture, noise, and air
quality.
D. Because of their security, blockchains can eliminate the need to verify the
accuracy of risk management data. Right Ans - D. Because of their security,
, blockchains can eliminate the need to verify the accuracy of risk management
data.
The purpose of fault tree analysis is to
A. Project consequences of some failure of a system component.
B. Quantify the probability of each possibility identified in the analysis.
C. Identify the various ways of interrupting the sequence of events leading to
system failure so that the failure itself can be prevented.
D. Provide an opportunity to discover and correct any defects in a product or
process while it is still in its early engineering phases. Right Ans - C.
Identify the various ways of interrupting the sequence of events leading to
system failure so that the failure itself can be prevented.
Tom, the regional manager at Westfork Mutual, has planned a community
service day for all employees. He has asked his two assistant managers, Julian
and Leah, to spread the word to other employees and encourage them to
attend. Based on centrality measures of the company's email traffic, Tom is
confident that Julian will spread the word to more employees more quickly
through email than will Leah. Tom's confidence is based on Julian's high score
in which one of the following centrality measures?
A. Degree
B. Betweenness
C. Association
D. Closeness Right Ans - D. Closeness
Home Appliance Company has decided to change its production method.
Previously, small teams of workers assembled washers, dryers, and
dishwashers. Under the new production method, an assembly-line will be
used, with some functions performed by robotics. Before making the change,
Home Appliance Company has created a team of experts from company
personnel to identify all of the risks inherent in the new production method
and to recommend measures to address these risks. The team will assemble in
a facilitated workshop and follow these steps:
Divide the production method into components
Review each component to identify risk
Identify causes and potential outcomes for each risk
Develop a solution for each risk.
This team approach is risk identification is called a
A. SWOT (strengths, weaknesses, opportunities, threats) analysis.
