Certified Supply Chain Professional (CSCP) Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Study for the Certified Supply Chain Professional (CSCP) Practice Exam. Prepare with multiple choice questions, each accompanied by hints and explanations. Get ready to ace your exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What does a standard deviation of 0 indicate about demand compared to forecast?

Demand is greater than forecast
Demand is less than forecast
Demand equals forecast
Demand is highly variable

The correct answer is: Demand equals forecast

A standard deviation of 0 indicates that there is no variability in the demand; it means that the demand is consistently the same with no fluctuation. When demand equals the forecast consistently, this stability is reflected in the standard deviation being zero. In this scenario, every observation matches the forecast, indicating perfect alignment between the projected demand figures and the actual demand experienced. Since standard deviation represents the spread or dispersion of data points around the mean (in this case, the forecast), a value of 0 signifies that all data points (the actual demand quantities) are identical to the forecasted values, confirming that demand matches forecast closely without any variation. Hence, the conclusion drawn here is that demand equals the forecast.