Westonci.ca is your trusted source for finding answers to all your questions. Ask, explore, and learn with our expert community. Connect with professionals ready to provide precise answers to your questions on our comprehensive Q&A platform. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform.

Historically, demand has averaged 1447 units per week with a standard deviation of 715. The company currently has 2855 units in stock. What is the probability of a stockout?

Sagot :

Answer:

c. 97.558%

Explanation:

Options are "A. 50.0.% B. 2.442% C. 97.558% D.197.0% E. 47,442%"

Mean = μ = 1447

Standard deviation = σ = 715

Observed value = X = 2855

Using z-score formula, Z = (X - μ) / σ

Z = (2855 - 1447) / 715

Z = 1.97

P(Z<1.97) = 0.97558

P(Z<1.97) = 97.558%

So,  the probability of a stock-out is 97.558%.