Use the Table Below to Answer the Following Question(s)

question 39

Multiple Choice

Use the table below to answer the following question(s) .
Below is the spreadsheet for an economic order quantity model.

Assume that the distribution of demand is normal with a mean of 20,000 and standard deviation of 2,000.
-What is the coefficient of variation obtained from the simulation results?

• A)0.28
• B)0.10
• C)0.45
• D)0.60

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Definitions:

Purchasing Power

The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy.

Heckscher-Ohlin Theory

An economic theory stating that countries will export products that utilize their abundant and cheap factor(s) of production and import products that require resources that are rare or expensive domestically.

Factor Endowments

The quantities of various resources a country possesses, which can affect its comparative advantage in international trade.

Free-Trade Theories

Economic theories advocating for the elimination of barriers to the exchange of goods and services between nations, to encourage trade and economic growth.