Carrying Insufficient Quantities of Inventory on Hand

question 79

Multiple Choice

Carrying insufficient quantities of inventory on hand:

• A)would not affect the company's profitability.
• B)may result in lost sales.
• C)has little effect on customer satisfaction.
• D)will increase the costs of carrying inventory.

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Definitions:

Population standard deviation

A measure of the dispersion or variability within a total population.

Sample median

The midpoint value of a sample data set, where half the numbers are above the median and half are below.

Confidence interval

An extent of values, obtained via sample statistical analysis, seen as likely embracing the unknown value of a population attribute.

Random sample

A subset of individuals chosen from a larger set where each member has an equal chance of being selected.