Instruction 2 $$\begin{array} { | l | l | } \hline X & f \\\hline 1 & 14 \\\hline 2 & 18 \\\hline 3 & 12 \\\hline 4 & 5 \\\hline 5 & 1 \\\hline\end{array}$$

question 58

Multiple Choice

Instruction 2.1
An insurance company evaluates many numerical variables about a person before deciding on an appropriate rate for automobile insurance. A representative from a local insurance agency selected a random sample of insured drivers and recorded, X, the number of claims each made in the last three years, with the following results.
$$\begin{array} { | l | l | } \hline X & f \\\hline 1 & 14 \\\hline 2 & 18 \\\hline 3 & 12 \\\hline 4 & 5 \\\hline 5 & 1 \\\hline\end{array}$$
-Referring to Instruction 2.1,how many total claims are represented in the sample?

• A) 15
• B) 111
• C) 50
• D) 250

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Definitions:

Safety Stock

Additional inventory kept on hand to prevent stockouts caused by fluctuations in demand or supply delays.

Lead Time

The amount of time it takes for a process to go from the initiation phase to its completion.

Monthly Usage

The total amount of a resource or input consumed within a month, often tracked for budgeting and planning purposes.

Backflush Costing

A simplified accounting method that applies costs to products after the completion of production, often used in just-in-time manufacturing systems.