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E1 Exam Simulator
  • Exam Code: E1
  • Exam Name: Managing Finance in a Digital World
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  • Q & A: 40 Questions and Answers
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NEW QUESTION: 1
Which of the following contracts has the MOST risk for the buyer?
A. Time and Materials (T&M)
B. Fixed price (FP)
C. Cost plus fixed fee (CPFF)
D. Cost plus percentage of costs (CPPC)
Answer: D
Explanation:
Cost-plus contracts are ones where the seller bills the buyer for any costs incurred on the project. A "Cost plus percentage of costs" (CPPC) contract is one where the seller agrees to pay a percentage of the total costs of the project. This is the riskiest kind of contract for the buyer, because if the costs get really high then they're passed along to the buyer - and the seller doesn't have any incentive to keep them down!

NEW QUESTION: 2
Which of the following distribution assumptions will produce the lowest probability of exceeding an extreme value, assuming identical means and variances?
A. a distribution with kurtosis = 5
B. a normal distribution
C. t-distribution
D. a normal mixture distribution
Answer: B
Explanation:
Explanation
An 'extreme value' will be a value that will lie in the tails. We need to determine the distribution that will have the least weight in the tails so that the probability of exceeding this tail value is minimum across the given choices.
The t-distribution, a distribution with kurtosis > 3 and a normal mixture distribution are all distributions with tails fatter than that for a normal distribution. A normal distribution will have the 'thinnest' tails among the choices and therefore the lowest probability of exceeding a given tail event value.
A note about the t-distribution: Leptokurtic distributions (those that have kurtosis>3, ie kurtosis greater than that for a normal distribution) generally appear to have higher peaks on their PDF graphs. The t-distribution is flatter, and actually appears lower than a normal distribution, which may make one think that it has a lower kurtosis and therefore should have thinner tails than a normal distribution. But that is not so, and the "visual" inspection test fails for inferring the kurtosis from just looking a the shape of the distribution. The kurtosis of a t-distribution is given by the formula {3 + 6/(d - 4)}, where d is the degrees of freedom and d > 4. Therefore the kurtosis of a t-distribution is always greater than 3 as "6/(d-4)" will always be a positive number being added to 3. Therefore there is no conflict between a t-distribution having fatter tails than a normal distribution as it has a higher kurtosis, even though it appears 'lower' on a graph when superimposed with a normal distribution.

NEW QUESTION: 3
An SOA Solution Designer's recommendation for a financial institution is to use a separate gateway and Enterprise Service Bus (ESB) component. The decision considered a number of factors including the organizations current IT environment, staff skills, and non-functional requirements. However, the client has investigated using a more powerful single SOA appliance as a gateway and ESB to save money. Which action should be taken?
A. Make sure that the gateway can scale to the combined non-functional requirements of the ESB and gateway components.
B. Implement the customer's suggestions and build the ESB into the gateway.
C. Suggest the client reconsider the impact of combining the gateway and ESB functionality on the same physical hardware.
D. Suggest that they use multiple security domains for each of the component implementations.
Answer: C

NEW QUESTION: 4
Which asset typo must you select for searching web service in Oracle Enterprise Repository?

A. Composite Service
B. ADF Service
C. Composite
D. ADF service Data Object
Answer: C

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