What Is Generally True About the Class a Items in ABC

question 3

Multiple Choice

What is generally true about the class A items in ABC analysis? They represent

• A) about 30 percent of all items.
• B) about 20 percent of all items.
• C) about 50 percent of the dollar usage.
• D) about 20 percent of the dollar usage.

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Definitions:

Conditional Probability

The probability of an event occurring given that another event has already occurred.

Conditional Probability

The probability of an event occurring given the occurrence of another event, often represented as P(A|B).

Independent Events

Two or more events where the occurrence of one does not affect the probability of the other(s).

Event Will Not Occur

The probability that a specific event does not happen, which can be calculated by subtracting the event’s probability of occurring from 1.