A wholesaler sets a national distribution center to serve the five regions in the country: Hawaii, East, West, North and South. Mean and standard deviation of weekly demand is given in the table below, as well as pairwise demand correlations. Demand Hawaii East West North South

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A wholesaler sets a national distribution center to serve the five regions in the country: Hawaii, East, West,
North and South. Mean and standard deviation of weekly demand is given in the table below, as well as
pairwise demand correlations.
Demand Hawaii
East
West
North
South
Mean
20
50
70
60
50
St. Dev
5
10
20
10
10
Correlations Hawaii
East
South
Hawaii
1
0
0
East
0
1
-0.25
0.2
0
West
0
-0.25
1
-0.2
0.3
North
0
0.2
-0.2
1
-0.4
South
0
0
0.3
-0.4
1
Demand per regions over time is uncorrelated. Assume that there are 4 weeks in a month.
What is the standard deviation of monthly national demand?
West
North
O
O
Transcribed Image Text:A wholesaler sets a national distribution center to serve the five regions in the country: Hawaii, East, West, North and South. Mean and standard deviation of weekly demand is given in the table below, as well as pairwise demand correlations. Demand Hawaii East West North South Mean 20 50 70 60 50 St. Dev 5 10 20 10 10 Correlations Hawaii East South Hawaii 1 0 0 East 0 1 -0.25 0.2 0 West 0 -0.25 1 -0.2 0.3 North 0 0.2 -0.2 1 -0.4 South 0 0 0.3 -0.4 1 Demand per regions over time is uncorrelated. Assume that there are 4 weeks in a month. What is the standard deviation of monthly national demand? West North O O
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