Certified Supply Chain Professional (CSCP) Practice Exam

What is the probability of occurrence described for rare events?

1. 10%

2. 50%

3. 75%

4. 90%

The correct answer is: 10%

The choice indicating a probability of occurrence for rare events typically suggests that such events happen with a likelihood of 10% or lower. In many statistical contexts, a rare event is often defined by its infrequent nature, where it occurs with a significantly lower probability compared to more common events. In practical terms, if there is a 10% chance of an event happening, it suggests that it is not expected to happen frequently and is consistent with the definition of a rare event. In contrast, probabilities like 50%, 75%, or 90% imply a much higher expectation of occurrence and would generally not be categorized as rare events. Thus, a 10% probability aligns with the characteristics of rare occurrences in various fields, including supply chain management, risk assessment, and statistics.