Inventory Levels Unexpectedly Rise and Firms Cutback on Production

question 157

Multiple Choice

Inventory levels unexpectedly rise and firms cutback on production.Which of the following is consistent with these two occurrences?

• A) TP is greater than TE.
• B) TP is less than TE.
• C) TP is equal to TE.
• D) TP is equal to TE minus the rise in inventories above the optimum inventory level.
• E) none of the above

---

Definitions:

Standard deviation

A measure of the amount of variation or dispersion of a set of values, indicating how spread out the values in a data set are.

Electric usage

The amount of electrical energy consumed by a residence, industry, or equipment in a specific period.

Standard error of the mean

The standard deviation of the sampling distribution of the sample mean, measuring how far the sample mean of the data is likely to be from the true population mean.

Population standard deviation

The square root of the variance of a population, which measures the dispersion of a set of values relative to their mean.