A Distribution of Lead Times in an Inventory Problem Indicates

question 27

Multiple Choice

A distribution of lead times in an inventory problem indicates that lead time was 1 day 20 percent of the time, 2 days 30 percent of the time, 3 days 30 percent of the time, and. 4 days 20 percent of the time. This distribution has been prepared for Monte Carlo analysis. The first four random numbers drawn are 06, 63, 57, and 02. The average lead time of this simulation is

• A) 1.75 days
• B) 2 days
• C) 3 days
• D) 3.5 days
• E) none of these

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Definitions:

Degrees of Freedom

The number of independent values in a statistical calculation that can vary without violating any constraints applied to them, often informing the complexity of an analysis or test.

Completely Randomized Design

An experimental design where all subjects are assigned randomly to various treatments, ensuring that the experiment does not systematically favor any outcomes.

F-distribution

A probability distribution that arises in the analysis of variances across different groups, commonly used in ANOVA testing.

Test Statistic

A value calculated from sample data during a hypothesis test that is used to determine whether to reject the null hypothesis.