The Use of the Normal Probability Distribution as an Approximation $\bar { p }$

question 20

Multiple Choice

The use of the normal probability distribution as an approximation of the sampling distribution of $\bar { p }$ is based on the condition that both np and n(1 - p) equal or exceed _____.

• A) .05
• B) 5
• C) 15
• D) 30

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Definitions:

Newsvendor Model

A mathematical model used to determine optimal inventory levels for products with uncertain demand and a limited selling period.

Net Present Value

A financial metric that calculates the difference between the present value of cash inflows and outflows over a period of time, used in capital budgeting to assess the profitability of an investment.

Early Start Time

The earliest possible time at which a particular activity or event is scheduled to begin, often used in project management.

Latest Finish Time

Refers to the latest possible point in time that an activity or task can be completed without delaying the project.