In the _____ Contract, If the Supplier Can Demonstrate Actual

question 90

Multiple Choice

In the _____ contract, if the supplier can demonstrate actual cost savings through production efficiencies or substitution of materials, the resulting savings from the initial price targets are shared between the supplier and the purchaser at a predetermined rate.

• A) time and materials
• B) cost plus fixed fee
• C) fixed-price with incentives
• D) firm fixed price
• E) fixed-price with escalation

---

Definitions:

Effect Size

A metric that quantifies the extent of an event or the force of association among variables.

Relationship Between Variables

The relationship between variables refers to how changes in one variable are associated with changes in another through correlation or causation.

Significance Level

The significance level, often denoted by alpha (α), is the threshold chosen by the researcher to determine the statistical significance of an outcome; it's the probability of rejecting the null hypothesis when it is true.

Highly Significant

A term used in statistical analysis to denote results that vastly exceed the threshold for statistical significance, often suggesting a strong effect or association.