A Distribution of Lead Times in an Inventory Problem Indicates

question 2

Multiple Choice

A distribution of lead times in an inventory problem indicates that lead time was 1 day 20% of the time, 2 days 30% of the time, 3 days 30% of the time, and. 4 days 20% of the time. This distribution has been prepared for Monte Carlo analysis. The first four random numbers drawn are 06, 63, 57, and 02. The average lead time of this simulation is

• A) 1.75 days.
• B) 2 days.
• C) 3 days.
• D) 3.5 days.
• E) 4 days.

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Definitions:

Degrees of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution or to a system, minus the number of linear constraints.

Table Value

A specific value found in a statistical table, often used as a reference point for data analysis or hypothesis testing.

Expected Frequencies

The predicted counts of observations in each category of a statistical distribution based on a theoretical model.

Two-Tailed Test

A Two-Tailed Test is a statistical test in which the critical area of a distribution is two-sided and tests whether a sample is either greater than or less than a certain range of values.