Answer the Following Questions Using the Information Below:
the Allianz

question 150

Multiple Choice

Answer the following questions using the information below:
The Allianz Company produces a specialty wood furniture product, and has the following information available concerning its inventory items:
$\begin{array} { l } \text {Relevant ordering costs per purchase order }&\$450 \\ \text {Relevant carrying costs per year for each package: }& \\ \text { Required annual return on investment}& 15\%\\ \text {Required other costs per wear }& \$4\\\end{array}$
Annual demand is 30,000 packages per year. The purchase price per package is $48.
-What is the annual relevant carrying costs?

• A) $5,196
• B) $6,971
• C) $8,695
• D) $3105.30

---

Definitions:

Unrepresentative Cases

Unrepresentative cases are examples or outcomes that do not accurately reflect the general population or the average scenario, making them poor bases for generalizations.

Statistical Reasoning

The process of using statistical methods and thinking to make sense of data and draw conclusions.

Generalize

To generalize means to form a broad conclusion or derive a common attribute from specific instances, observations, or experiences.

Sample

A subset of a population selected for measurement, observation, or questioning to provide statistical information about the population.