If It Takes a Supplier Four Days to Deliver an Order

question 95

Multiple Choice

If it takes a supplier four days to deliver an order once it has been placed and the standard deviation of daily demand is 10,which of the following is the standard deviation of usage during lead time?

• A)10
• B)20
• C)40
• D)100
• E)400

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Definitions:

Z-score

A statistical measure that indicates the number of standard deviations a data point is from the mean.

Normal Random Variable

A random variable that has a distribution defined by a normal curve, characterized by its mean and variance.

Mean

A measure of central tendency calculated by dividing the sum of all values in a dataset by the number of values.

Standard Normal Random Variable

A normal distribution with a mean of 0 and standard deviation of 1, used as a reference to determine probabilities for normal distributions.