Which of the Following Statements Does NOT Accurately Explain What

question 99

Multiple Choice

Which of the following statements does NOT accurately explain what occurs when the number of facilities in a distribution network increases?

• A) response time decreases
• B) profit first increases, then decreases
• C) total logistics costs first decrease, then increase
• D) inventory costs increase
• E) response time first decreases, then increases

---

Definitions:

Probabilities

The measure of the likelihood that an event will occur, expressed as a number between 0 and 1.

Coin Toss

A simple randomness procedure used to decide between two equally probable outcomes with the flip of a coin.

Expected Value

The predicted value of a variable, calculated as the sum of all possible values each multiplied by the probability of its occurrence.

Expected Value

An average value determined by weighing all potential outcomes of a random variable according to their likelihood of happening.