In a Single-Period Inventory Situation, the Probabilities That Demand Will

question 80

Multiple Choice

In a single-period inventory situation, the probabilities that demand will be 1, 2, 3, or 4 units are .3, .3, .2, and .2, respectively. If two units are stocked, what is the probability of selling both of them?

• A) .5
• B) .6
• C) .7
• D) .8
• E) .9

---

Definitions:

Peer Evaluations

The assessment of an individual's performance, contributions, or abilities by their colleagues or equals in a workplace or academic setting.

Popularity Contest

A derogatory term for a situation where success is determined more by likability or public opinion than by merit or performance.

Stereotypes

Overgeneralized beliefs about a particular category of people.

Central Tendency Error

A bias in performance appraisals where the evaluator rates most employees as being average, overlooking individual differences in performance.