The Weyerhauser Lumber Company Headquartered in Tacoma, Washington, Is One

question 159

Multiple Choice

The Weyerhauser Lumber Company headquartered in Tacoma, Washington, is one of the largest timber and wood product companies in the world. Weyerhauser manufactures plywood at one of its Oregon plants. Plywood contains minor imperfections that can be repaired with small "plugs." One customer will accept plywood with a maximum of 3.5 plugs per sheet on average. Suppose a shipment was sent to this customer and when the customer inspected two sheets at random, 10 plugged defects were counted. What is the probability of observing 10 or more plugged defects if in fact the 3.5 average per sheet is being satisfied?

• A) 0.1887
• B) 0.1695
• C) 0.2115
• D) 0.2675

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Definitions:

=MAPE Function

Stands for Mean Absolute Percentage Error, a statistical measure used to assess the accuracy of forecasting models.

Mean Absolute Percent Error

A measure of prediction accuracy in statistics, representing the average of the absolute percentages of errors between predicted and observed values.

Strategic And Planning Decisions

High-level decisions that shape the overall direction and objectives of an organization, involving long-term planning and allocation of resources.

Production Forecasts

Predictions about the quantity of products a company needs to produce in future periods based on expected demand.