LOMA 335 CERTIFICATION EXAM
QUESTIONS WITH CORRECT
ANSWERS
research proposal - Answer-A document that presents an outline of a proposed
research project focused on meeting a specified research purpose or objective. [6]
research report - Answer-For a business research project, a written document prepared
at the end of the project for the purpose of communicating the significance of research
findings. [6]
reward power - Answer-Power that occurs because a person has the ability to grant
rewards to those who comply with requests or commands. [3]
rework costs - Answer-A set of costs connected with correcting poor quality, including
costs for redoing work already done. [10]
risk - Answer-Generally the potential for an unexpected outcome. In decision theory, an
environment in which incomplete but reliable information is available, such that the
various states of nature could produce different outcomes for each decision alternative,
and the decision maker is able to assign an individual probability to each state of nature.
[5, 7]
role - Answer-A socially determined way of behaving in a specific situation [4]
role conflict - Answer-A type of conflict that occurs when individuals are confronted by
different role expectations. [4]
role expectations - Answer-How others believe an individual should act in a given
situation. [4]
root cause - Answer-A specific identifiable event that results in an unforeseen or
undesired consequence. a root cause must fall under the company's authority and
control and must be capable of being reasonably remedied or resolved. [10]
root cause analysis - Answer-A set of structured analysis methods typically applied to
discover the causal factors that led to a given negative outcome, so those factors can
be corrected or eliminated. Root cause analysis is typically used to identify the causes
of problems related to quality control, processes, and systems. [10]
,rostered staff factor - Answer-For a contact center, indicates the minimum number of
customer service representatives needed to meet service-level objectives, taking into
account customer service representatives who are schedule but unavailable. Also called
overlay, shrink factor or shrinkage. [12]
rules engine - Answer-A software-based repository of key business process rules that
can be consistently applied in specified circumstances to produce the desired results.
[11]
rules-based regulation - Answer-Insurance regulation that sets explicit rules that each
company must meet, regardless of individual company characteristics. [13]
salary survey - Answer-A type of comparison study in which employers share their
compensation data with an external researcher, who accumulates and analyzes the
data. Also known as compensation survey. [6]
sales commission - Answer-an amount of money, usually a percentage of a sale that is
paid to someone for selling a product or service. [4]
sample - Answer-A small specimen representative of a larger group or population. [9]
sample error - Answer-The difference between population values and the values
derived from a sample of the population. [9]
sampling bias - Answer-A type of statistical bias that, when present in a sampling
technique, renders the technique more likely to include some members of the target
population than others. Also known as sampling selection bias or selection bias. [6]
SAS 70 - Answer-An auditing standard developed and maintained for service
organizations by the American Institute of Certified Public Accountants (AICPA) Also
known as Statement on Auditing Standards (SAS) No 70 Service Organizations. [13]
SAS 70 Service Auditor's report (SAR) - Answer-Under SAS 70 standards, a type of
audit report that evaluates the effectiveness of internal control over financial reporting
as required under SOX. [13]
scalable process - Answer-A process that can grow and adjust to changes in volume
without losing efficiency or effectiveness. [11]
scatter diagram - Answer-In quantitative analysis, a diagram used to visually check for a
likely correlation between two variables. [8]
schedule variance - Answer-The difference between the scheduled finish date for an
activity and the actual finish date. [14]
,scheduling - Answer-In a contact center, the process of determining how many and
which customer service representatives will be available to serve customers during
specified days and time intervals. [12]
scientific method - Answer-An approach to obtaining useful information by following
systematic and rigorous research procedures. [5]
scope creep - Answer-In project management, a condition in which features of a project
and its objectives change informally, without formal actions to address and negotiate
changes with project stakeholders. [14]
scope statement - Answer-In project management, a report that clearly sets limits on a
project by specifying the project size, resources, constraints, and deliverables. [14]
screen pop - Answer-In a contact center, a technology that delivers a customer's
account information and relevant data to a customer service representative's computer
at the same time the customer service representative receives a call from that
customer. [12]
seasonal variation - Answer-A consistent pattern of change that occurs with every
successive 12-month period. [8]
Securities and Exchange Commission (SEC) - Answer-A US federal agency that
regulates the securities industry. [13]
self-determination theory (SDT) - Answer-A theory of motivation that focuses on the
beneficial effects of intrinsic motivation and the harmful effects of extrinsic motivation. In
an organizational context, SDT proposes that individuals prefer to feel they are in
charge of their work - that they are intrinsically motivated by it - rather than that they
work to obtain goals imposed on them by a supervisor or other authority. [4]
self-managed team - Answer-A work group of typically 10-15 members who handle
many traditional managerial responsibilities as part of their normal work routine.
Sometimes called a self directed team. [4]
self-regulatory organization (SRO) - Answer-A nongovernmental organization that
exercises regulatory authority over an industry or profession. [13]
service function - Answer-A function in which an employee provides service directly for
a sales producer, purchaser or user of an insurance product; serves policy holders
making premium payments and policy changes on in-force business; or helps deliver
policy benefits in a claims setting. [1]
simple moving average model - Answer-A model that requires finding the arithmetic
average (mean) of data values, but it considers only a specified number, n, of the most
, recent data values. Each time the model is used, the data value from the oldest period
is eliminated and the data value from the most recent period is included. [8]
simple random sampling - Answer-A method of probability sampling in which every
member of the data population has an equal chance of being included in the sample
population. [9]
simple regression analysis - Answer-Analysis of trends using a regression model that
considers only one independent variable and traditionally written as y = a + bx. [8]
SIPOC diagram - Answer-A type of process diagram used to record the findings of the
Define and Measure stages of DMAIC, with attention to the categories of suppliers,
inputs, process, outputs, and customers. SIPOC is an acronym based on the initials for
Suppliers, Inputs, Process, Outputs and Customers. [11]
Six Sigma - Answer-A formal process improvement program for operations. [11]
skill variety - Answer-the degree to which a job requires a variety of different activities,
allowing the worker to use different skills and talents. [4]
skills-based pay increase - Answer-A variation of a merit pay raise that rewards
employees for developing and improving job skills. [4]
skills-based routing (SBR) - Answer-A type of intelligent call routing that allows contact
centers to send specific types of requests to the most qualified customer service
representatives. [12]
social acceptance bias - Answer-A consistent cognitive error consisting of a tendency
for individuals to make socially acceptable statements, even though they may feel or
think something else which they perceive as socially unacceptable. [6]
Solvency II - Answer-In Europe, insurance solvency legislation that is designed to
regulate insurance company solvency in the public interest and to facilitate the
development of a single market in insurance services among European Union member
nations. [13]
solvency regulation - Answer-Insurance regulation that addresses the need for
insurance companies to be financially stable and capable of paying obligations and
disbursing benefits when they are due. Also known as prudential regulation. [13]
SOX - Answer-A US federal act that sets extensive requirements for internal controls
and corporate governance for public companies operating in the US. Also known as
Sarbanes-Oxley Act of 2002. [13]
QUESTIONS WITH CORRECT
ANSWERS
research proposal - Answer-A document that presents an outline of a proposed
research project focused on meeting a specified research purpose or objective. [6]
research report - Answer-For a business research project, a written document prepared
at the end of the project for the purpose of communicating the significance of research
findings. [6]
reward power - Answer-Power that occurs because a person has the ability to grant
rewards to those who comply with requests or commands. [3]
rework costs - Answer-A set of costs connected with correcting poor quality, including
costs for redoing work already done. [10]
risk - Answer-Generally the potential for an unexpected outcome. In decision theory, an
environment in which incomplete but reliable information is available, such that the
various states of nature could produce different outcomes for each decision alternative,
and the decision maker is able to assign an individual probability to each state of nature.
[5, 7]
role - Answer-A socially determined way of behaving in a specific situation [4]
role conflict - Answer-A type of conflict that occurs when individuals are confronted by
different role expectations. [4]
role expectations - Answer-How others believe an individual should act in a given
situation. [4]
root cause - Answer-A specific identifiable event that results in an unforeseen or
undesired consequence. a root cause must fall under the company's authority and
control and must be capable of being reasonably remedied or resolved. [10]
root cause analysis - Answer-A set of structured analysis methods typically applied to
discover the causal factors that led to a given negative outcome, so those factors can
be corrected or eliminated. Root cause analysis is typically used to identify the causes
of problems related to quality control, processes, and systems. [10]
,rostered staff factor - Answer-For a contact center, indicates the minimum number of
customer service representatives needed to meet service-level objectives, taking into
account customer service representatives who are schedule but unavailable. Also called
overlay, shrink factor or shrinkage. [12]
rules engine - Answer-A software-based repository of key business process rules that
can be consistently applied in specified circumstances to produce the desired results.
[11]
rules-based regulation - Answer-Insurance regulation that sets explicit rules that each
company must meet, regardless of individual company characteristics. [13]
salary survey - Answer-A type of comparison study in which employers share their
compensation data with an external researcher, who accumulates and analyzes the
data. Also known as compensation survey. [6]
sales commission - Answer-an amount of money, usually a percentage of a sale that is
paid to someone for selling a product or service. [4]
sample - Answer-A small specimen representative of a larger group or population. [9]
sample error - Answer-The difference between population values and the values
derived from a sample of the population. [9]
sampling bias - Answer-A type of statistical bias that, when present in a sampling
technique, renders the technique more likely to include some members of the target
population than others. Also known as sampling selection bias or selection bias. [6]
SAS 70 - Answer-An auditing standard developed and maintained for service
organizations by the American Institute of Certified Public Accountants (AICPA) Also
known as Statement on Auditing Standards (SAS) No 70 Service Organizations. [13]
SAS 70 Service Auditor's report (SAR) - Answer-Under SAS 70 standards, a type of
audit report that evaluates the effectiveness of internal control over financial reporting
as required under SOX. [13]
scalable process - Answer-A process that can grow and adjust to changes in volume
without losing efficiency or effectiveness. [11]
scatter diagram - Answer-In quantitative analysis, a diagram used to visually check for a
likely correlation between two variables. [8]
schedule variance - Answer-The difference between the scheduled finish date for an
activity and the actual finish date. [14]
,scheduling - Answer-In a contact center, the process of determining how many and
which customer service representatives will be available to serve customers during
specified days and time intervals. [12]
scientific method - Answer-An approach to obtaining useful information by following
systematic and rigorous research procedures. [5]
scope creep - Answer-In project management, a condition in which features of a project
and its objectives change informally, without formal actions to address and negotiate
changes with project stakeholders. [14]
scope statement - Answer-In project management, a report that clearly sets limits on a
project by specifying the project size, resources, constraints, and deliverables. [14]
screen pop - Answer-In a contact center, a technology that delivers a customer's
account information and relevant data to a customer service representative's computer
at the same time the customer service representative receives a call from that
customer. [12]
seasonal variation - Answer-A consistent pattern of change that occurs with every
successive 12-month period. [8]
Securities and Exchange Commission (SEC) - Answer-A US federal agency that
regulates the securities industry. [13]
self-determination theory (SDT) - Answer-A theory of motivation that focuses on the
beneficial effects of intrinsic motivation and the harmful effects of extrinsic motivation. In
an organizational context, SDT proposes that individuals prefer to feel they are in
charge of their work - that they are intrinsically motivated by it - rather than that they
work to obtain goals imposed on them by a supervisor or other authority. [4]
self-managed team - Answer-A work group of typically 10-15 members who handle
many traditional managerial responsibilities as part of their normal work routine.
Sometimes called a self directed team. [4]
self-regulatory organization (SRO) - Answer-A nongovernmental organization that
exercises regulatory authority over an industry or profession. [13]
service function - Answer-A function in which an employee provides service directly for
a sales producer, purchaser or user of an insurance product; serves policy holders
making premium payments and policy changes on in-force business; or helps deliver
policy benefits in a claims setting. [1]
simple moving average model - Answer-A model that requires finding the arithmetic
average (mean) of data values, but it considers only a specified number, n, of the most
, recent data values. Each time the model is used, the data value from the oldest period
is eliminated and the data value from the most recent period is included. [8]
simple random sampling - Answer-A method of probability sampling in which every
member of the data population has an equal chance of being included in the sample
population. [9]
simple regression analysis - Answer-Analysis of trends using a regression model that
considers only one independent variable and traditionally written as y = a + bx. [8]
SIPOC diagram - Answer-A type of process diagram used to record the findings of the
Define and Measure stages of DMAIC, with attention to the categories of suppliers,
inputs, process, outputs, and customers. SIPOC is an acronym based on the initials for
Suppliers, Inputs, Process, Outputs and Customers. [11]
Six Sigma - Answer-A formal process improvement program for operations. [11]
skill variety - Answer-the degree to which a job requires a variety of different activities,
allowing the worker to use different skills and talents. [4]
skills-based pay increase - Answer-A variation of a merit pay raise that rewards
employees for developing and improving job skills. [4]
skills-based routing (SBR) - Answer-A type of intelligent call routing that allows contact
centers to send specific types of requests to the most qualified customer service
representatives. [12]
social acceptance bias - Answer-A consistent cognitive error consisting of a tendency
for individuals to make socially acceptable statements, even though they may feel or
think something else which they perceive as socially unacceptable. [6]
Solvency II - Answer-In Europe, insurance solvency legislation that is designed to
regulate insurance company solvency in the public interest and to facilitate the
development of a single market in insurance services among European Union member
nations. [13]
solvency regulation - Answer-Insurance regulation that addresses the need for
insurance companies to be financially stable and capable of paying obligations and
disbursing benefits when they are due. Also known as prudential regulation. [13]
SOX - Answer-A US federal act that sets extensive requirements for internal controls
and corporate governance for public companies operating in the US. Also known as
Sarbanes-Oxley Act of 2002. [13]
