Answer the Following Question(s) Using the Risk Solver Platform (5000

question 19

Multiple Choice

Answer the following question(s) using the Risk Solver Platform (5000 trials per simulation; use the Latin Hypercube sampling method) .
Consider the spreadsheet for a Newsvendor Model. $\begin{array}{|l|l|c|c|l|c|}\hline &{\text { A }} & \text { B } & \text { C } & \text { D } & \text { E } \\\hline 1 & \text { Newsvendor Model } & & & \begin{array}{l}\text { Historical } \\\text { Candy Sales }\end{array} &\$ 264.00 \\\hline 2 & & && 50 & \$ 264.00 \\\hline 3 && \text { Data } & & 45 & \$ 264.00 \\\hline 4 && & & 40 & \$ 228.00 \\\hline 5 & \text { Sellingprice } & \$ 18.00 && 46 & \$ 264.00 \\\hline 6 & \text { Cost } & \$ 12.00 && 43 & \$ 255.00 \\\hline 7 & \text { Discount price } & \$ 9.00 && 43 & \$ 255.00 \\\hline 8 & & && 46 & \$ 264.00 \\\hline 9 & \text { Model } & && 42 & \$ 246.00 \\\hline 10 & & && 44 & \$ 264.00 \\\hline 11 & \text { Demand } & 44 && 43 & \$ 255.00 \\\hline 12 & \text { Purchase Quantity } & 44 && 47 & \$ 264.00 \\\hline 13 & & && 41 & \$ 237.00 \\\hline 14 & \text { Quantity Sold } & && 41 & \$ 237.00 \\\hline 15 & \text { Surplus Quantity } & && 45 & \$ 264.00 \\\hline 16 & & && 51 & \$ 264.00 \\\hline 17 & \text { Profit } & && 43 & \$ 255.00 \\\hline 18 & & & & 45 & \$ 264.00 \\\hline 19 & & & & 42 & \$ 246.00 \\\hline 20 & & & & 44 & \$ 264.00 \\\hline 21 & & & & 48 & \$ 264.00 \\\hline 22 & & & \text { Average Profit } & & \\\hline\end{array}$
-What is the value of mean absolute deviation?

• A) $8.91
• B) $5.45
• C) $12.35
• D) $15.64

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Definitions:

Bills Of Exchange Act

The Bills of Exchange Act is legislation that regulates the creation, transfer, obligations, and rights of parties involved in bills of exchange, a form of negotiable instrument used in trade and finance.

Promissory Notes Act

Legislation that governs the issuance, form, and effects of promissory notes, which are written promises to pay a specified sum of money to a specified person or the bearer at a specified time.

Countermand Payment

The act of canceling a payment or stopping the processing of a payment order by the payer.

Certified Cheque

A cheque guaranteed by a bank, indicating that the signer has enough funds in their account to cover the amount of the cheque.