Uncertainty in Demand and Economic Factors Should Be Included in the Financial

question 2

Multiple Choice

Uncertainty in demand and economic factors should be included in the financial evaluation of supply chain design decisions,because

• A) the exclusion of certainty may have a significant impact on this evaluation.
• B) the exclusion of uncertainty may have a significant impact on this evaluation.
• C) the inclusion of certainty may have a significant impact on this evaluation.
• D) the inclusion of uncertainty may have a significant impact on this evaluation.
• E) none of the above

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Definitions:

One-Sample Test

A statistical test used to determine whether a sample mean significantly differs from a known or hypothesized population mean.

Hypothesized Proportion Value

A specified value of a population proportion in hypothesis testing that serves as the basis for comparing with the proportion observed in the sample data.

Proportion

A part, share, or number considered in comparative relation to a whole; a fraction or percentage of a total.

Z-Test

A statistical test used to determine whether two population means are different when the variances are known and the sample size is large.