If, in a Single-Period Inventory Situation, the Probabilities of Demand

question 101

Multiple Choice

If, in a single-period inventory situation, the probabilities of demand being 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)none of these

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Definitions:

Pearson Correlations

A measure of the linear correlation between two variables, quantified by the Pearson correlation coefficient, ranging from -1 to 1.

Variables

Elements, features, or factors that are likely to vary or change among individuals or experiments.

Predictors

Variables in statistical models that are used to forecast or anticipate the outcome of a dependent variable.

Explained Variance

The portion of the total variance in a dataset that is attributable to the model's inputs.