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

question 14

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 mean absolute deviation obtained from the simulation results?

• A)39.10
• B)24.56
• C)58.75
• D)46.36

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Definitions:

Cash Flow

The aggregate of funds entering and exiting a corporation, significantly impacting its liquidity levels.

Merger

The combining of two or more companies into a single entity, often to enhance competitiveness and efficiency.

Incremental Cash Flows

The difference between a firm’s future cash flows with a project and without the project.

Outstanding Shares

The total number of shares of stock that are currently owned by shareholders, including those held by institutional investors and restricted shares.