Competitive Bidding Is Most Effective When All of the Following

question 60

Multiple Choice

Competitive bidding is most effective when all of the following conditions apply except when _____.

• A)the buying firm can provide qualified suppliers with clear descriptions of the items or services to be purchased
• B)volume is high enough to justify the cost and effort
• C)the firm does not have a preferred supplier
• D)the item is new or technically complex, with only vague specifications
• E)None of these conditions apply to competitive bidding.

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Definitions:

Random Variables

Variables whose values depend on outcomes of a stochastic (random) phenomenon.

Nature

The intrinsic physical and material world all around us, not made or caused by humankind.

Normal Random Variable

A variable that follows a normal distribution, characterized by its mean and standard deviation.

Z-score

A numerical measurement that describes a value's relationship to the mean of a group of values, measured in terms of standard deviations from the mean.