From a Portion of a Probability Distribution, You Read That

question 59

Multiple Choice

From a portion of a probability distribution, you read that P(demand = 1) is 0.05, P(demand = 2) is 0.15, and P(demand = 3) is .20. The cumulative probability for demand = 3 would be which of the following?

• A) 0.133
• B) 0.200
• C) 0.400
• D) 0.600
• E) Cannot be determined from the information given.

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Definitions:

UPS

United Parcel Service, a global parcel delivery and supply chain management company.

Cross Dock Distribution Center

A logistics strategy where incoming shipments are unloaded, sorted, and directly loaded onto outbound trucks, minimizing storage time.

Milk Runs

A logistics term for a round trip that facilitates either distribution or collection, aiming to maximize efficiency and reduce transportation costs.

LTL Carrier

A logistics service provider that transports smaller shipments not requiring a full truckload, often combining cargo from multiple customers.