Which One of the Following Correlation Relationships Has the Potential

question 35

Multiple Choice

Which one of the following correlation relationships has the potential to completely eliminate risk?

• A)perfectly positive
• B)positive
• C)negative
• D)perfectly negative
• E)uncorrelated

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Definitions:

Safety Inventory

Buffer stock maintained to guard against unforeseen spikes in demand or delays in supply, ensuring consistent service levels.

Aggregation

The process of combining multiple pieces of data or information to create a summary or composite view.

Safety Inventory

Additional stock kept beyond expected demand to protect against variability in market demand or supply chain disruptions.

Normally Distributed

Refers to a probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.