If the Order Quantity Per Order Is 2,000 Units,annual Demand

question 9

Multiple Choice

If the order quantity per order is 2,000 units,annual demand is 10,000,and cost per order is $50,then which of the following statements is true?

• A)There are five orders in the year.
• B)The total annual ordering cost is $2,500.
• C)The holding cost per unit is $2.50.
• D)The total annual holding costs are $25,000 (= $2.50 * 10,000).

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Definitions:

Null Hypothesis

A hypothesis that assumes no significant difference or effect exists between certain datasets or variables.

Level of Significance

The threshold chosen by the researcher below which a p-value indicates that the observed result is statistically unlikely to have occurred by chance.

Expected Frequency

The predicted number of times an event will occur over a specified period in a statistical experiment.

Cramér's V

Cramér's V is a measure of association between two nominal variables, giving a value between 0 and 1 to indicate the strength of the relationship.