Which One of the Following Is Implied by an "Annual

question 39

Multiple Choice

Which one of the following is implied by an "annual" service level of 95 percent?

• A)Approximately 95 percent of demand between orders will be satisfied.
• B)The probability is 95 percent that all demand over the year will exceed supply.
• C)The probability is 95 percent that all demand over the year will equal supply.
• D)The probability is 95 percent that all demand over the year will not exceed supply.
• E)Approximately 95 percent of demand between orders will be lost.

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Definitions:

Equity of Redemption

The right of a mortgagor to reclaim property in the process of foreclosure by paying the debt owed.

Debtor

An individual or entity that owes money to another; the opposite party in these transactions is known as a creditor.

Mortgagor

The borrower in a mortgage agreement, who pledges the property as security for the repayment of the loan.

Mortgagee

The lender in a mortgage agreement, typically a bank or financial institution, that has the legal rights to the property as security for the loan provided.