A Person Is Using the Normal Distribution to Determine the Safety

question 108

Multiple Choice

A person is using the normal distribution to determine the safety stock for a product.The Z value of 2.33 would be associated with what service level?

• A)95 percent
• B)97.5 percent
• C)98 percent
• D)99 percent
• E)None of the above

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Definitions:

Compound Interest

This refers to interest being calculated on both the original amount deposited or borrowed and on the interest that has previously been added over time.

Desired Rate

The expected or target rate of return on an investment or project, often used as a benchmark for evaluating potential investment opportunities.

Depreciation Deduction

A tax deduction representing the decrease in value of an asset over time, allowed to be deducted from taxable income.

Internal Revenue Code

The comprehensive federal law that governs all aspects of income tax in the United States.