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ISM CPSMB Exam Syllabus Topics:

ISM CPSM Bridge Sample Questions:

1. Several key statistics are used to evaluate the accuracy of a prediction using regression analysis. Which type of regression analysis descriptor BEST fits Standard Error?

A) Measures the standard deviation of variation of the observed value from the predictive value and determines error.
B) Test for the accuracy of the regression equation. It represents the significance level at which the user would reject the regression as inaccurate.
C) Represents a decreasing index of the reliability of the calculated result. It proves the 95% confidence level.
D) Compares the estimated and actual values of the Y dependent variable ranging from a value of 0 to 1.

2. All of the following are components used to manage ramp-up strategy EXCEPT?

A) Operations and capabilities
B) New process implementation
C) Logistics and distribution capabilities
D) Lead time and inventory planning

3. Exchange rates may change over time in response to different forces, which choice is not a prominent force for exchange rates?

A) International movements of capitals and incomes.
B) Commercial policies of government that are barriers to trade such as tariffs.
C) Changes in the Gross Domestic Product (GDP).
D) Domestic inflation rates compared to foreign inflation rates.

4. Which of the following price strategies would one use if they allow the seller to charge an hourly rate for labor plus the cost of materials and allowable expenses?

A) Market demand pricing
B) Time and material contracts
C) Market based approach
D) Loss leader pricing

5. An organizational structure where the authority for supply functions are assigned to a central organization is called?

A) Authority purchasing organizational structure.
B) Central organization buying organizational structure.
C) Centralized purchasing organizational structure.
D) Central buying organizational structure.

Solutions: