In the Notation Below,X Is the Random Variable,c Is a Constant,and

question 66

Multiple Choice

In the notation below,X is the random variable,c is a constant,and V refers to the variance.Which of the following laws of variance is not true?

• A)V(c)= 0
• B)V(X + c)= V(X)+ c
• C)V(cX)= c² V(X)
• D)None of these choices.

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Definitions:

Safety Stocks

Additional quantities of stock kept in inventory to reduce the risk of stockouts caused by variations in supply or demand.

Average Inventory

Average Inventory is a calculation used to estimate the value or quantity of inventory that a business holds over a specific period, often used for analyzing inventory efficiency.

Net Present Value

The difference between the present value of cash inflows and outflows over a period of time, used to assess the profitability of an investment.

Cash Sales Policy

A cash sales policy is a company's strategy to require payment for goods or services at the time of sale, which can improve cash flow and reduce credit risk.