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  1. Home
  2. IIA Certification
  3. IIA-CIA-Part3 Exam
  4. IIA.IIA-CIA-Part3.v2022-03-14.q256 Dumps
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Question 226

How is the letter x in the standard regression equation best described?

Correct Answer: A
The letter x in the standard regression equation is the independent variable. For example, in a regression to determine the total cost of production, x equals units produced.
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Question 227

A bank is designing an on-the-job training program for its branch managers. The bank would like to design the program so that participants can complete it as quickly as possible. The training program requires that certain activities be completed before others. For example, a participant cannot make credit loan decisions without first having obtained experience in the loan department. An appropriate scheduling technique for this training program is:

Correct Answer: A
PERT/CPM is a network technique for scheduling interrelated time series activities and identifying any critical paths in the series of activities. The critical path is the longest path through the network.
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Question 228

Assume that the optimal capital budget for the company is US $150 million. The marginal cost of capital and the appropriate discount rate to use in evaluating investment proposals for this company would be:

Correct Answer: C
The appropriate discount rate the cost of capital used in capital budgeting) theoretically is determined at the intersection of the IOS and MCC schedules. This intersection is at an r..1r-~:0 of IC I% and an optimal capital budget of US $125 million. However, if the optimal capital budget is assumed to be US $150 million, the company is still in the second interval of the MCC schedule. The marginal cost of financing in this part of the schedule is 10%.
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Question 229

Bondholders are assured of protection against inflation if they hold:

Correct Answer: D
The interest payments on indexed or purchasing power bonds are based on an inflation index, such as the consumer price index. Thus, interest paid to bondholders rises automatically when the inflation rate rises.
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Question 230

A competitive marketing strategy in which a firm specializes in serving customers overlooked or ignored by major competitors is called a:

Correct Answer: D
Specializing in serving customers overlooked or ignored by major competitors is a market niche strategy. This strategy specializes along market, customer, product, or marketing mix lines.
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