Demand in each period follows the same normal distribution (i.e., there is one demand distribution that represents demand in any single period). Assuming demand is independent across periods, which of the following statements about mean demand over five periods is true? a. It equals the mean of demand over one period. b. It is greater than the mean of demand over one period but less than five times the mean of demand over one period. c. It equals five times the mean of demand over one period. d. It is even more than five times the mean of demand over one period.

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Answer 1

Textbook Question

Chapter 14, Problem 1CQ

Demand in each period follows the same normal distribution (i.e., there is one demand distribution that represents demand in any single period). Assuming demand is independent across periods, which of the following statements about mean demand over five periods is true?

a. It equals the mean of demand over one period.
b. It is greater than the mean of demand over one period but less than five times the mean of demand over one period.
c. It equals five times the mean of demand over one period.
d. It is even more than five times the mean of demand over one period.

Features Features Normal distribution is characterized by two parameters, mean (µ) and standard deviation (σ). When graphed, the mean represents the center of the bell curve and the graph is perfectly symmetric about the center. The mean, median, and mode are all equal for a normal distribution. The standard deviation measures the data's spread from the center. The higher the standard deviation, the more the data is spread out and the flatter the bell curve looks. Variance is another commonly used measure of the spread of the distribution and is equal to the square of the standard deviation.

Expert Solution & Answer

Summary Introduction

To identify: The statement that is true regarding the mean demand over five periods.

Explanation of Solution

Correct option: (c)

Correct answer:

It equals five times the mean of demand over one period.

Justification:

The demand follows the same normal distribution over the five periods. It is also assumed that the demand is independent across the periods. The mean of demand across multiple periods will be equal to the sum of the means of the demand of the individual periods. All the periods will have the same mean demand. Therefore, the demand over 5 periods will be equal to 5 times the demand in a single period.

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Answer 2

Textbook Question

Chapter 14, Problem 1CQ

Demand in each period follows the same normal distribution (i.e., there is one demand distribution that represents demand in any single period). Assuming demand is independent across periods, which of the following statements about mean demand over five periods is true?

a. It equals the mean of demand over one period.
b. It is greater than the mean of demand over one period but less than five times the mean of demand over one period.
c. It equals five times the mean of demand over one period.
d. It is even more than five times the mean of demand over one period.

Features Features Normal distribution is characterized by two parameters, mean (µ) and standard deviation (σ). When graphed, the mean represents the center of the bell curve and the graph is perfectly symmetric about the center. The mean, median, and mode are all equal for a normal distribution. The standard deviation measures the data's spread from the center. The higher the standard deviation, the more the data is spread out and the flatter the bell curve looks. Variance is another commonly used measure of the spread of the distribution and is equal to the square of the standard deviation.

Expert Solution & Answer

Summary Introduction

To identify: The statement that is true regarding the mean demand over five periods.

Explanation of Solution

Correct option: (c)

Correct answer:

It equals five times the mean of demand over one period.

Justification:

The demand follows the same normal distribution over the five periods. It is also assumed that the demand is independent across the periods. The mean of demand across multiple periods will be equal to the sum of the means of the demand of the individual periods. All the periods will have the same mean demand. Therefore, the demand over 5 periods will be equal to 5 times the demand in a single period.

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Answer 3

Textbook Question

Chapter 14, Problem 1CQ

Demand in each period follows the same normal distribution (i.e., there is one demand distribution that represents demand in any single period). Assuming demand is independent across periods, which of the following statements about mean demand over five periods is true?

a. It equals the mean of demand over one period.
b. It is greater than the mean of demand over one period but less than five times the mean of demand over one period.
c. It equals five times the mean of demand over one period.
d. It is even more than five times the mean of demand over one period.

Features Features Normal distribution is characterized by two parameters, mean (µ) and standard deviation (σ). When graphed, the mean represents the center of the bell curve and the graph is perfectly symmetric about the center. The mean, median, and mode are all equal for a normal distribution. The standard deviation measures the data's spread from the center. The higher the standard deviation, the more the data is spread out and the flatter the bell curve looks. Variance is another commonly used measure of the spread of the distribution and is equal to the square of the standard deviation.

Expert Solution & Answer

Summary Introduction

To identify: The statement that is true regarding the mean demand over five periods.

Explanation of Solution

Correct option: (c)

Correct answer:

It equals five times the mean of demand over one period.

Justification:

The demand follows the same normal distribution over the five periods. It is also assumed that the demand is independent across the periods. The mean of demand across multiple periods will be equal to the sum of the means of the demand of the individual periods. All the periods will have the same mean demand. Therefore, the demand over 5 periods will be equal to 5 times the demand in a single period.

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Answer 4

Textbook Question

Chapter 14, Problem 1CQ

Demand in each period follows the same normal distribution (i.e., there is one demand distribution that represents demand in any single period). Assuming demand is independent across periods, which of the following statements about mean demand over five periods is true?

a. It equals the mean of demand over one period.
b. It is greater than the mean of demand over one period but less than five times the mean of demand over one period.
c. It equals five times the mean of demand over one period.
d. It is even more than five times the mean of demand over one period.

Features Features Normal distribution is characterized by two parameters, mean (µ) and standard deviation (σ). When graphed, the mean represents the center of the bell curve and the graph is perfectly symmetric about the center. The mean, median, and mode are all equal for a normal distribution. The standard deviation measures the data's spread from the center. The higher the standard deviation, the more the data is spread out and the flatter the bell curve looks. Variance is another commonly used measure of the spread of the distribution and is equal to the square of the standard deviation.

Expert Solution & Answer

Summary Introduction

To identify: The statement that is true regarding the mean demand over five periods.

Explanation of Solution

Correct option: (c)

Correct answer:

It equals five times the mean of demand over one period.

Justification:

The demand follows the same normal distribution over the five periods. It is also assumed that the demand is independent across the periods. The mean of demand across multiple periods will be equal to the sum of the means of the demand of the individual periods. All the periods will have the same mean demand. Therefore, the demand over 5 periods will be equal to 5 times the demand in a single period.

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Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

Summary Introduction

To identify: The statement that is true regarding the mean demand over five periods.

Explanation of Solution

Correct option: (c)

Correct answer:

It equals five times the mean of demand over one period.

Justification:

The demand follows the same normal distribution over the five periods. It is also assumed that the demand is independent across the periods. The mean of demand across multiple periods will be equal to the sum of the means of the demand of the individual periods. All the periods will have the same mean demand. Therefore, the demand over 5 periods will be equal to 5 times the demand in a single period.

Answer 8

Expert Solution & Answer

Summary Introduction

To identify: The statement that is true regarding the mean demand over five periods.

Explanation of Solution

Correct option: (c)

Correct answer:

It equals five times the mean of demand over one period.

Justification:

The demand follows the same normal distribution over the five periods. It is also assumed that the demand is independent across the periods. The mean of demand across multiple periods will be equal to the sum of the means of the demand of the individual periods. All the periods will have the same mean demand. Therefore, the demand over 5 periods will be equal to 5 times the demand in a single period.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Summary Introduction

To identify: The statement that is true regarding the mean demand over five periods.

Answer 12

Explanation of Solution

Correct option: (c)

Correct answer:

It equals five times the mean of demand over one period.

Justification:

The demand follows the same normal distribution over the five periods. It is also assumed that the demand is independent across the periods. The mean of demand across multiple periods will be equal to the sum of the means of the demand of the individual periods. All the periods will have the same mean demand. Therefore, the demand over 5 periods will be equal to 5 times the demand in a single period.

Answer 13

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