CIPS Exam L5M2 Topic 3 Question 53 Discussion

Actual exam question for CIPS's L5M2 exam

Question #: 53
Topic #: 3

[All L5M2 Questions]

Oliver is a procurement manager and he is trying to work out the likelihood that a supplier fails to deliver to the warehouse two days in a row. Which of the following methodologies should Oliver use?

Avalue at risk

Bnormal distribution

Cbinomial distribution

DPoisson Distribution

Show Suggested Answer

Suggested Answer: A

The correct answer is 1 - the 3rd party can provide broader experience and expertise. They can advise on best practice and will know how to advise Robot Ltd as they will have experience across a wide range of companies. This is explained on p.91 of the study guide

by Deane at Mar 04, 2025, 07:06 PM

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Nida

1 days ago

I agree with Sharee, binomial distribution is the most appropriate for this scenario.

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Casie

3 days ago

Hmm, I'm not so sure. Binomial distribution seems a bit too simplistic. Maybe the Poisson distribution would be a better fit, since it's often used for rare events like supplier failures.

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Sharee

4 days ago

Oliver should use binomial distribution.

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Huey

8 days ago

I think Oliver should use the binomial distribution method. It's perfect for analyzing the probability of a supplier failing to deliver on two consecutive days.

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