AACE CCT PRIMER 2026 STUDY GUIDE QUESTIONS AND
ANSWERS GRADED A+
✔✔_____ positive if the tails are "heavier" than for a normal
distribution and negative if the tails are "lighter" than for a normal distribution. -
✔✔Kurtosis
✔✔Regression analysis provides a "_______" mathematical equation for the
relationship between the dependent variable (response) and independent variable(s). -
✔✔best-fit
✔✔The _______ test can be used to determine how well theoretical distributions (such
as the normal and binomial distributions) fit empirical distributions (i.e., those obtained
from sample data) - ✔✔chi-squared
✔✔The compound rate of interest that when used to discount study period costs and
benefits of a project, will make their time- values equal is called _____ _____ of _____.
- ✔✔internal rate return
✔✔Present value is the value of a benefit or cost found by _____ future ____ ____ to
the base time. - ✔✔discounting, cash flows
✔✔The value of a benefit or a cost at some point in the future, considering the time
value of money - ✔✔Future Value
✔✔A(n) ____ ____ is used to find the best possible choice out of a set of alternatives. It
may use the mathematical expression of a problem to maximize or minimize some
function. - ✔✔optimization model
✔✔Mathematical techniques for solving a general class of optimization problems
through minimization (or maximization) of a linear function subject to linear constraints. -
✔✔linear programming
✔✔Creation of a physical representation or mathematical description of an object,
system or problem that reflects the function or characteristics of the item involved. -
✔✔modeling
✔✔The technique of _____ ____ _____ consists of simulating an experiment or model
to determine some probabilistic property of a model,system or population of objects or
events by use of random sampling to the components of the model, system, objects, or
events - ✔✔monte carlo simulation
, ✔✔A ____ _____ tests the outcome of an analysis by altering one or more parameters
from an initially assumed value - ✔✔sensitivity analysis
✔✔The human environment in which the enterprise exists as defined by its economic,
political, legal, and other attributes. - ✔✔society
✔✔Definitive position of an organization on how investment or project decisions will be
made. Establishes the basis for decision models. Provides a basis for consistent and
appropriate decision making and defines authority and accountability within the
organization. - ✔✔decision policy
✔✔Values and rules of conduct are referred to as ____. In judging, people and
organizations must ask questions about the means and ends such as: Are they fair,
respectful, responsible,
honest, and honorable? _____ sets the framework for this questioning, but ______ and
_______ make the judgments and set the rules. - ✔✔ethics, society, individuals and
organizations
✔✔The AACE member, to uphold and advance the honor and dignity of Cost
Engineering and the Cost Management profession and in keeping with the high
standards of ethical conduct will (1) be _____ and ____ and will serve employer, clients,
and the public with devotion; (2) strive to
_____ the competence and _____ of their profession; and (3) will apply _____ and
_____ to advance human welfare. - ✔✔honest, impartial, increase, prestige, knowledge,
skill
✔✔AACE members will hold paramount the safety, health, and welfare of the public,
including that of _____ _____ - ✔✔future generations
✔✔AACE members will endeavor to extend public knowledge and appreciation of cost
engineering and cost management and its _______, and will oppose any untrue,
unsupported, or
______ _______ regarding cost engineering and cost management. -
✔✔achievements, exaggerated statements
✔✔AACE Members will express an opinion on a cost engineering or cost management
subject only when it is founded on _____ _____ and _____ _____. - ✔✔adequate
knowledge, honest conviction
✔✔Members will approve or seal only those documents, reviewed or prepared by ____,
which are determined to be ___ for public health and welfare in conformity with
accepted _____ ____, cost management and economic standards. - ✔✔them, safe,
cost engineering
ANSWERS GRADED A+
✔✔_____ positive if the tails are "heavier" than for a normal
distribution and negative if the tails are "lighter" than for a normal distribution. -
✔✔Kurtosis
✔✔Regression analysis provides a "_______" mathematical equation for the
relationship between the dependent variable (response) and independent variable(s). -
✔✔best-fit
✔✔The _______ test can be used to determine how well theoretical distributions (such
as the normal and binomial distributions) fit empirical distributions (i.e., those obtained
from sample data) - ✔✔chi-squared
✔✔The compound rate of interest that when used to discount study period costs and
benefits of a project, will make their time- values equal is called _____ _____ of _____.
- ✔✔internal rate return
✔✔Present value is the value of a benefit or cost found by _____ future ____ ____ to
the base time. - ✔✔discounting, cash flows
✔✔The value of a benefit or a cost at some point in the future, considering the time
value of money - ✔✔Future Value
✔✔A(n) ____ ____ is used to find the best possible choice out of a set of alternatives. It
may use the mathematical expression of a problem to maximize or minimize some
function. - ✔✔optimization model
✔✔Mathematical techniques for solving a general class of optimization problems
through minimization (or maximization) of a linear function subject to linear constraints. -
✔✔linear programming
✔✔Creation of a physical representation or mathematical description of an object,
system or problem that reflects the function or characteristics of the item involved. -
✔✔modeling
✔✔The technique of _____ ____ _____ consists of simulating an experiment or model
to determine some probabilistic property of a model,system or population of objects or
events by use of random sampling to the components of the model, system, objects, or
events - ✔✔monte carlo simulation
, ✔✔A ____ _____ tests the outcome of an analysis by altering one or more parameters
from an initially assumed value - ✔✔sensitivity analysis
✔✔The human environment in which the enterprise exists as defined by its economic,
political, legal, and other attributes. - ✔✔society
✔✔Definitive position of an organization on how investment or project decisions will be
made. Establishes the basis for decision models. Provides a basis for consistent and
appropriate decision making and defines authority and accountability within the
organization. - ✔✔decision policy
✔✔Values and rules of conduct are referred to as ____. In judging, people and
organizations must ask questions about the means and ends such as: Are they fair,
respectful, responsible,
honest, and honorable? _____ sets the framework for this questioning, but ______ and
_______ make the judgments and set the rules. - ✔✔ethics, society, individuals and
organizations
✔✔The AACE member, to uphold and advance the honor and dignity of Cost
Engineering and the Cost Management profession and in keeping with the high
standards of ethical conduct will (1) be _____ and ____ and will serve employer, clients,
and the public with devotion; (2) strive to
_____ the competence and _____ of their profession; and (3) will apply _____ and
_____ to advance human welfare. - ✔✔honest, impartial, increase, prestige, knowledge,
skill
✔✔AACE members will hold paramount the safety, health, and welfare of the public,
including that of _____ _____ - ✔✔future generations
✔✔AACE members will endeavor to extend public knowledge and appreciation of cost
engineering and cost management and its _______, and will oppose any untrue,
unsupported, or
______ _______ regarding cost engineering and cost management. -
✔✔achievements, exaggerated statements
✔✔AACE Members will express an opinion on a cost engineering or cost management
subject only when it is founded on _____ _____ and _____ _____. - ✔✔adequate
knowledge, honest conviction
✔✔Members will approve or seal only those documents, reviewed or prepared by ____,
which are determined to be ___ for public health and welfare in conformity with
accepted _____ ____, cost management and economic standards. - ✔✔them, safe,
cost engineering
