Which of These Statements Is True

question 113

Multiple Choice

Which of these statements is true?

• A) A low inventory turnover ratio or a low days' sales in inventory is a sign of good inventory management.
• B) A high inventory turnover ratio or a low days' sales in inventory is a sign of good inventory management.
• C) A low inventory turnover ratio or a high days' sales in inventory is a sign of good inventory management.
• D) A high inventory turnover ratio or a high days' sales in inventory is a sign of good inventory management.

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Definitions:

Mode

The value that appears most frequently in a data set, a measure of central tendency.

Proportion of Weights

The ratio of an individual weight to the total weight of all items combined, often used in statistical calculations to determine relative importance.

Tchebysheff's Theorem

A statistical rule stating that for any set of data, no matter the distribution, a certain proportion of values will fall within a specified number of standard deviations from the mean.

Empirical Rule

A statistical rule stating that for a normal distribution, nearly all of the data will fall within three standard deviations of the mean.