IASSC Exam ICBB Topic 10 Question 52 Discussion

Actual exam question for IASSC's ICBB exam

Question #: 52
Topic #: 10

[All ICBB Questions]

A Belt working in a supply chain environment has to make a decision to change suppliers of critical raw materials for a new product upgrade. The purchasing manager is depending on the Belt's effort requiring that the average cost of an internal critical raw material component be less than or equal to $3,600 in order to stay within budget. Using a sample of 42 first article components, a Mean of the new product upgrade price of $3,200 and a Standard Deviation of $180 was estimated. Based on the data provided, the Z value for the data assuming a Normal Distribution is?

A1.11

B2.22

C4.30

D5.42

Show Suggested Answer

Suggested Answer: A

by Earleen at Aug 10, 2023, 06:04 AM

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Alberta

3 months ago

I bet the answer is hidden in the secret decoder ring that came with my cereal this morning. D - 8.28, no doubt about it!

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Mariann

3 months ago

Seriously, who writes these exam questions? They're like trying to solve a Rubik's cube while juggling. I'm going with D - 8.28, just to mess with the graders.

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Tamra

3 months ago

Ah, a classic normal distribution problem. Okay, let me think this through... Yep, definitely A - 2.33. I'm feeling confident about this one.

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Cecily

1 months ago

Exactly, the Z value of -2.33 indicates that the sample mean of $3,200 is 2.33 standard deviations below the population mean of $3,600. This means the new supplier meets the budget requirements.

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Xuan

2 months ago

That makes sense. So in this case, the Z value would be (3200 - 3600) / 180 = -2.33. It falls within the range of -2.33 to 2.33 for a 95% confidence level.

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