Consider the Following Statements: (1)The Purpose of Spend Analysis Is

question 34

Multiple Choice

Consider the following statements: (1) The purpose of spend analysis is to find opportunities to reduce cost by
Consolidating spending.
(2) The purpose of spend analysis is to find opportunities to reduce cost by
Moving all spending to a single supplier.

• A) Only (1) is correct.
• B) Only (2) is correct.
• C) Both (1) and (2) are correct.
• D) Neither (1) nor (2) is correct.

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Definitions:

Variance

A measure of the spread of a set of values, calculated as the average of the squared deviations from the mean.

Index Funds

Mutual funds or ETFs designed to track the components of a market index, offering broad market exposure and low operating expenses.

Expected Monetary Value

A statistical concept that calculates the average outcome of a future event that may or may not happen, taking into account all possible scenarios and their probabilities.

Average Payoff

The expected outcome or return of an investment or decision averaged over all possible scenarios.