In a Recent Report to the Supply-Chain Manager in a Major

question 59

True/False

In a recent report to the supply-chain manager in a major electronics company, the report writer stated that with 90 percent confidence, the manufacturing lead time for a critical part is between 3.34 hours and 4.14 hours. Based on this information, the margin of error for this estimate is ±.80 hours.

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Definitions:

Time Series

A sequence of data points, typically consisting of successive measurements made over a time interval.

Weighted Moving Average

A statistical method used to analyze data points by giving different weights to different data points, commonly used in stock market analysis and forecasting.

Record Keeping

The systematic process of creating, maintaining, and managing records or documents for the purpose of providing accurate evidence of business transactions and activities.

Simple Exponential Smoothing

A time series forecasting method for univariate data that considers the weighted sum of past observations, with the weights declining exponentially as the observations get older.