The Probability That House Sales Will Increase in the Next

question 96

Multiple Choice

The probability that house sales will increase in the next 6 months is estimated to be 0.25.The probability that the interest rates on housing loans will go up in the same period is estimated to be 0.74.The probability that house sales or interest rates will go up during the next 6 months is estimated to be 0.89.The probability that both house sales and interest rates will increase during the next 6 months is:

• A)0.10
• B)0.185
• C)0.705
• D)0.90

Recognize the role of collaborative planning, forecasting, and replenishment (CPFR) in supply chain management.

Understand the essence of mean absolute deviation (MAD) and bias as metrics of forecast accuracy.

Identify different types of errors in demand forecasting and how to calculate forecast error.

Understand the similarities and differences between CPFR (Collaborative Planning, Forecasting, and Replenishment) and S&OP (Sales and Operations Planning) processes.

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Definitions:

Total Output

The complete quantity of goods or services produced by an entity within a specific period.

Loanable Funds

Financial resources available for borrowing, which constitute the supply in the loan markets.

Interest Rate

The percentage charged on the total amount of borrowed money or paid on savings, indicating the cost of borrowing or the reward for saving.

Equilibrium Interest Rate

The equilibrium interest rate is the rate at which the demand for funds equals the supply of funds in the financial markets, balancing savings and investments.