CORE ORIGINAL QUESTIONS & PDF CORE FREE

CORe Original Questions & Pdf CORe Free

CORe Original Questions & Pdf CORe Free

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ISM Supply Management Core Exam Sample Questions (Q55-Q60):

NEW QUESTION # 55
A manager wants to examine the effect of season (Spring, Summer, Autumn or Winter) and time of the game (Morning, Afternoon or Evening) on the number of television viewers for a National Basketball Association game. How many dummy variables should be included in the multipleregression?

  • A. 0
  • B. 1
  • C. 2
  • D. 3

Answer: A


NEW QUESTION # 56
Rebates are considered part of which of the following types of cost management?

  • A. Cost avoidance
  • B. Cost mitigation
  • C. Cost containment
  • D. Cost reduction

Answer: D


NEW QUESTION # 57
A college bookstore sells textbooks at a 15 percent discount to professors while successfully selling the same books at full price to students. What conditions are present so that the bookstore can charge different prices? (Select all that apply.)

  • A. The books can also be purchased online.
  • B. The demand for the books is elastic.
  • C. Professors are unable to resell books.
  • D. The bookstore has few close competitors.
  • E. The bookstore is owned by the college where it sells books.

Answer: C,D


NEW QUESTION # 58
Which of the following refers to the process of generating information about the types of items sourced and their cumulative dollar value, to use for strategic and operational purchase planning?

  • A. Cost analysis
  • B. Portfolio analysis
  • C. Spend analysis
  • D. Regression analysis

Answer: C

Explanation:
Spend analysis is the process of collecting, cleansing, classifying, and analyzing expenditure data with the purpose of reducing procurement costs, improving efficiency, and monitoring compliance. It generates information about the types of items sourced and their cumulative dollar value, providing insights that can be used for strategic and operational purchase planning.
References
* Spend Analysis: The Window into Strategic Sourcing by Kirit Pandit and Haralambos Marmanis
* "Spend Analysis: A Critical Element of Strategic Sourcing" - Aberdeen Group


NEW QUESTION # 59
A group of season ticket holders wants to forecast attendance at National Football League (NFL) games for the upcoming season. One ticket holder argues that using the population of the United States as the only independent variable would explain as much as using both the United States population and the percent change in disposable income (per capita) as independent variables. Another ticket holder argues that using the percent change in disposable income (per capita) asthe only independent variable would provide the most accurate forecast. Listed below are the Adjusted R2 values for three regression models. Based on these values, and keeping in mind that the ticket holders are only concerned about forecasting, what is the correct conclusion?
- NFL Attendance vs. US Population and Percent Change in Disposable Income.
Adjusted R2= 0.8964 - NFL Attendance vs. US Population: Adjusted R2= 0.8609 - NFL Attendance vs. Percent Change in Disposable Income. Adjusted R2= -0.0244

  • A. The Adjusted R2 of NFL Attendance vs. US Population is higher than that of NFL Attendance vs. Percent Change in Disposable Income, so US Population should be the only independent variable in the regression model.
  • B. There is not any information regarding the p-values of the independent variables, so it is impossible to determine the explanatory power of the regression models.
  • C. The Adjusted R2 of NFL Attendance vs. Percent Change in Disposable Income is negative, so Percent Change in Disposable Income should be excluded from any regression model.
  • D. The Adjusted R2 of NFL Attendance vs. US Population and Percent Change in Disposable Income is higher than that of either single variable regression model, so both US Population and Percent Change in Disposable Income should be included in the regression model.

Answer: D


NEW QUESTION # 60
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