The UNLV Bookstore Sells a Unique Calculator to College Students

question 32

Multiple Choice

The UNLV Bookstore sells a unique calculator to college students.The demand for this calculator has a normal distribution with an average daily demand of 20 units and a standard deviation of 4 units per day.The lead time for this calculator is very stable at 9 days.Compute the statistical reorder point that results in a 95 percent in-stock probability (Z = 1.65) .

• A)19.8 units
• B)80 units
• C)180 units
• D)199.8 units
• E)720 units

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Definitions:

SRS

Simple Random Sampling (SRS) is a method of selecting individuals from a population in such a way that every set of individuals has an equal chance of being chosen.

Sample Size

The number of observations or data points that constitute a sample drawn from a population for statistical analysis.

Standard Deviation

A measure of the amount of variation or dispersion in a set of values, showing how much each value in the set varies from the mean.

Binomial Populations

Populations for which the outcomes can be classified into two categories (success/failure) and the number of successes in a set number of trials can be predicted.