If the Standard Deviation of Demand Is 10 and the Desired

question 2

Multiple Choice

If the standard deviation of demand is 10 and the desired service level is 0.90,then what is the safety stock?

• A)9
• B)10
• C)12.8
• D)16.5
• E)23.3

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Definitions:

Aggregate-Demand Curve

A visual depiction illustrating the connection between the total economy's price level and the aggregate demand for products and services at this specific price point.

Interest-Rate Effect

The change in spending and borrowing behavior in an economy due to a change in interest rates, often influencing total demand.

U.S. Economy

The economic system of the United States, characterized by a mixed economy with both private enterprise and government regulation.

Liquidity Preference

A theory that suggests individuals prefer to have their resources in liquid form to meet immediate demands for funds.