When a Continuous Probability Distribution Is Used to Approximate a Discrete

question 26

Multiple Choice

When a continuous probability distribution is used to approximate a discrete probability distribution, a value of 0.5 is

• A) added to and/or subtracted from the area.
• B) added to and/or subtracted from the value of x.
• C) added to and/or Subtracted from the value of z.
• D) added to and /or subtracted from the value of µ.

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Definitions:

EOQ

Economic Order Quantity, a formula used to determine the optimum order quantity that minimizes total inventory costs.

Dependent Demand

Refers to the demand for components or raw materials that is driven by, and directly related to, the demand for the finished goods they contribute to.

Independent Demand

The need for a product or service that is not influenced by the demand for other products, often applied in inventory management and forecasting.

Inventory

The raw materials, work-in-process products, and finished goods considered to be part of a business's assets that are ready or will be ready for sale.