A Large Manufacturer of Batteries Knows That, Historically, 10% of Its

question 36

Essay

A large manufacturer of batteries knows that, historically, 10% of its batteries come off the production line defective, and the remaining 90% of batteries come off the production line in working condition. Conduct a simulation to estimate how many batteries the company needs to pull off the production line in order to be sure of ending up with 10 working batteries.
-Describe how you will use a random number table to conduct this simulation.

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Definitions:

Inventory Method

An approach or system used to value and manage inventory, such as FIFO (First In, First Out), LIFO (Last In, First Out), or weighted average cost.

Lower Of Cost

Lower of cost or market is an accounting principle where inventory is recorded at either its historical cost or market value, whichever is lower, to reflect potential losses.

Inventory Item

Goods or materials that a business holds for the ultimate purpose of resale or use in production.

Inventory Value

The total cost or market value of all the goods held by a company intended for sale or for use in producing goods for sale.