Two Characteristics, or Assumptions, of the Poisson Distribution Are That

question 26

Multiple Choice

Two characteristics, or assumptions, of the Poisson distribution are that

• A) the probability of success remains constant from trial to trial, and the random variable of interest is continuous.
• B) the event occurring in any interval is independent of the event occurring in any other nonoverlapping interval, and the random variable of interest is continuous.
• C) the event occurring in any interval is independent of the event occurring in any other nonoverlapping interval, and the random variable of interest is discrete.
• D) the event occurring in any interval is dependent on the event occurring in any other nonoverlapping interval, and the random variable of interest is continuous.

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Definitions:

Stockout

A situation where items are not in stock and unavailable for sale or use, leading to potential loss of sales.

Uncertainty of Demand

The unpredictable nature of consumer demand, making it challenging to accurately forecast sales or production needs.

Standard Deviation

A statistic that measures the dispersion or variability within a set of data points or distribution.

Lead Time

The amount of time that passes from the start of a process until its completion, often used in the context of product manufacturing and delivery.