ARM 401 EXAM PRACTICE | NEWEST
ACTUAL EXAM COMPLETE QUESTIONS
AND VERIFIED ANSWERS GRADED A+ |
100% PASS | 2025 UPDATE!
What are the main goals of a fault tree analysis? - ✔✔✔ Correct
Answer > The main goals of a fault tree analysis are to examine the
conditions surrounding a risk event by condensing knowledge of
general conditions to the specifi c conditions that may be responsible
for the event; to identify possible ways to interrupt the sequence of
events that led to the system failure to prevent similar occurrences in
the future; and to calculate the probability that a risk event will occur.
What's the purpose of a data governance program? - ✔✔✔ Correct
Answer > data governance program is to establish standards and
oversee the management of an organization's data assets.
The law of large numbers can be used to more accurately forecast
future events only when the events meet what three criteria? - ✔✔✔
Correct Answer > • They occurred in the past under substantially
identical conditions and resulted from unchanging forces. • They can be
expected to occur in the future under the same unchanging conditions.
• They have been and will continue to be both independent of one
another and suffi ciently numerous.
,What are some examples of external data? - ✔✔✔ Correct Answer >
Examples of external data include open data; regulatory information;
and published statistical data related to demographics, industry trends,
survey results, and other subjects.
What are the steps in a 5 Whys analysis? - ✔✔✔ Correct Answer >
These are the steps in a 5 Whys analysis: • The specific problem under
investigation is described completely. • The investigator asks why that
particular problem occurred and determines the answer. • If the
answer does not reveal the problem's root cause, the investigator
determines why the problem embodied by the determination made in
Step 2 occurred. • The investigator repeats the previous two steps until
the root cause of the original problem has been determined—often
after fi ve why questions have been posed.
What is the difference between theoretical probability and empirical
probability? - ✔✔✔ Correct Answer > Theoretical probability is
unchanging. It's associated with events such as coin tosses or dice
throws. Empirical probability is associated with historical data. These
probabilities may change as new data is discovered or the environment
that produces those events changes
What are the two qualities shared by all outcomes of properly
constructed probability distributions? - ✔✔✔ Correct Answer > A
properly constructed probability distribution always contains outcomes
that are both mutually exclusive and collectively exhaustive.
, How do discrete and continuous probability distributions differ? -
✔✔✔ Correct Answer > Discrete probability distributions have a
finite number of possible outcomes, whereas continuous probability
distributions have an infinite number of possible outcomes.
How can a continuous distribution be designed to calculate the
probability that an outcome will fall within a certain range? - ✔✔✔
Correct Answer > A continuous distribution can be divided into a
finite number of bins to calculate the probability of an outcome falling
within a certain range
Why is it important to be able to accurately determine volatility? -
✔✔✔ Correct Answer > A subject that has higher volatility is riskier
and more likely to need to be monitored or managed. This is why it's
important to be able to accurately determine volatility.
What is an expected value, and how is it used? - ✔✔✔ Correct
Answer > The expected value is the weighted average of values.
Weights are given to each value based on its theoretical probability
(likelihood of occurrence). Expected value is also referred to as the
mean. It essentially amounts to the most obvious return that one can
expect from the action being taken.
What does value at risk (VaR) measure? - ✔✔✔ Correct Answer >
VaR measures the probability of incurring a loss in value that exceeds a
threshold level over a certain, usually short, time period.
ACTUAL EXAM COMPLETE QUESTIONS
AND VERIFIED ANSWERS GRADED A+ |
100% PASS | 2025 UPDATE!
What are the main goals of a fault tree analysis? - ✔✔✔ Correct
Answer > The main goals of a fault tree analysis are to examine the
conditions surrounding a risk event by condensing knowledge of
general conditions to the specifi c conditions that may be responsible
for the event; to identify possible ways to interrupt the sequence of
events that led to the system failure to prevent similar occurrences in
the future; and to calculate the probability that a risk event will occur.
What's the purpose of a data governance program? - ✔✔✔ Correct
Answer > data governance program is to establish standards and
oversee the management of an organization's data assets.
The law of large numbers can be used to more accurately forecast
future events only when the events meet what three criteria? - ✔✔✔
Correct Answer > • They occurred in the past under substantially
identical conditions and resulted from unchanging forces. • They can be
expected to occur in the future under the same unchanging conditions.
• They have been and will continue to be both independent of one
another and suffi ciently numerous.
,What are some examples of external data? - ✔✔✔ Correct Answer >
Examples of external data include open data; regulatory information;
and published statistical data related to demographics, industry trends,
survey results, and other subjects.
What are the steps in a 5 Whys analysis? - ✔✔✔ Correct Answer >
These are the steps in a 5 Whys analysis: • The specific problem under
investigation is described completely. • The investigator asks why that
particular problem occurred and determines the answer. • If the
answer does not reveal the problem's root cause, the investigator
determines why the problem embodied by the determination made in
Step 2 occurred. • The investigator repeats the previous two steps until
the root cause of the original problem has been determined—often
after fi ve why questions have been posed.
What is the difference between theoretical probability and empirical
probability? - ✔✔✔ Correct Answer > Theoretical probability is
unchanging. It's associated with events such as coin tosses or dice
throws. Empirical probability is associated with historical data. These
probabilities may change as new data is discovered or the environment
that produces those events changes
What are the two qualities shared by all outcomes of properly
constructed probability distributions? - ✔✔✔ Correct Answer > A
properly constructed probability distribution always contains outcomes
that are both mutually exclusive and collectively exhaustive.
, How do discrete and continuous probability distributions differ? -
✔✔✔ Correct Answer > Discrete probability distributions have a
finite number of possible outcomes, whereas continuous probability
distributions have an infinite number of possible outcomes.
How can a continuous distribution be designed to calculate the
probability that an outcome will fall within a certain range? - ✔✔✔
Correct Answer > A continuous distribution can be divided into a
finite number of bins to calculate the probability of an outcome falling
within a certain range
Why is it important to be able to accurately determine volatility? -
✔✔✔ Correct Answer > A subject that has higher volatility is riskier
and more likely to need to be monitored or managed. This is why it's
important to be able to accurately determine volatility.
What is an expected value, and how is it used? - ✔✔✔ Correct
Answer > The expected value is the weighted average of values.
Weights are given to each value based on its theoretical probability
(likelihood of occurrence). Expected value is also referred to as the
mean. It essentially amounts to the most obvious return that one can
expect from the action being taken.
What does value at risk (VaR) measure? - ✔✔✔ Correct Answer >
VaR measures the probability of incurring a loss in value that exceeds a
threshold level over a certain, usually short, time period.
