Suppose the Local Best Buy Store Averages 522 Customers Every

question 61

Multiple Choice

Suppose the local Best Buy store averages 522 customers every day entering the facility with a standard deviation of 124 customers. A random sample of 40 business days was selected. What is the probability that the average number of customers in the sample is between 530 and 540?

• A) 0.2387
• B) 0.1623
• C) 0.3057
• D) 0.0572

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Definitions:

Economic Order Quantity

The ideal order size to minimize total inventory costs including ordering, carrying, and stockout costs.

Variable Cost

A cost that varies with the level of output or production activity, increasing as production increases and decreasing as production decreases.

Carrying Cost

The total cost of holding inventory, including storage, insurance, taxes, and opportunity costs.

Terms Of Sale

Conditions agreed upon by the buyer and seller covering payment, delivery, and warranties, which define the responsibilities of each party in a transaction.