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ISM Supply Management Core Exam Sample Questions (Q182-Q187):

NEW QUESTION # 182
A government agency is interested in developing the most accurate forecast for the poverty rate in the United States and decides to perform regression analyses using a combination of the following independent variables: the percent of women in the labor force and the percent of the population that is uninsured. The agency collects data from all 50 U.S. states but is unsure whether both variables should be in the model. The agency runs three regressions:
Regression A. Poverty Rate = a + b1*(Percent of women in the labor force) + b2*(Percent uninsured)
Regression B. Poverty Rate = a + b*(Percent of women in the labor force)
Regression C. Poverty Rate = a + b*(Percent uninsured)

The regression statistics for all three regressions are given below. Based on these statistics, which model should the agency use to obtain the MOST accurate forecast?

A. Regressions A and B provide equally accurate forecasts
B. Regression A
C. Regression C
D. Regression B

Answer: D

NEW QUESTION # 183
MNO, Inc. is a manufacturing operation that has recently expanded from domestic to global locations. MNO's supply management department is considering a plan to obtain raw materials from suppliers nearby each location. The organization currently handles its sourcing from headquarters, which provides coordination and support for all contracts. Which of the following strategies will likely be MOST useful to MNO's expansion efforts?

A. Establishing a regional sourcing office that is centrally supported
B. Using current sources to increase volume leveraging
C. Contacting current suppliers to determine if they have offshore distribution
D. Identifying suppliers in the region and managing purchases locally

Answer: A

NEW QUESTION # 184
What is the first item that is usually forecasted when projecting financial statements?

A. Capital expenditures
B. Net income
C. Operating expenses
D. Revenue/Sales

Answer: D

NEW QUESTION # 185
A study was conducted to examine the relationship between age, education level, number of minor legal offenses, daily alcohol consumption, and annual income.

Based on the regression output below, what is the 95% confidence interval of the variable that has the highest statistical significance?

A. (303.02; 9,839.49)
B. (-6,560.05; 3,313.41)
C. (-1,374.98; 1,232.89)
D. (-3,990.67; 6,334.97)

Answer: A

NEW QUESTION # 186
A 95% confidence interval for a sample of data is as follows: Sample Mean: 90.5 Upper Bound: 98 Lower Bound: 83
Given this data, the tester is 95% confident that:

A. the sample mean falls between 83 and 98.
B. the true population mean falls between 83 and 98.
C. all of the observations will fall between 83 and 98.
D. the sample mean of 90.5 equals the true population mean.

Answer: B

NEW QUESTION # 187
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