1) Suppose that you believe that a cubic relationship exists between the indepen

Question

1) Suppose that you believe that a cubic relationship exists between the independent variable (of time) and the dependent variable Y. Which of the following would represent a valid linear regression model?

1) _______

A) Y = b0 + 3b1 X, where X = time

B) Y = b0 + b1 X, where X = time1/3

C) Y = b0 + b1 X, where X = time3

D) Y = b0 + 3b1 X, where X = time3

E) Y = b0 + b1 X3, where X = time

2) The demand during the lead time is normally distributed with a mean of 40 and a standard deviation of 4. If they have calculated a reorder point of 46.60 units, what service level are they assuming?

2) _______

A) 95 percent

B) 85 percent

C) 90 percent

D) 97.5 percent

E) none of the above

3) A person is using the normal distribution to determine the safety stock for a product. What "z" value would be associated with a 90 percent service level?             3) _______

A) -0.90

B) 0.90

C) 1.28

D) 0.53

E) none of the above

4) The annual demand for a product has been projected at 2,000 units. This demand is assumed to be constant throughout the year. The ordering cost is $20 per order, and the holding cost is 20 percent of the purchase cost. The purchase cost is $40 per unit. There are 250 working days per year. Whenever an order is placed, it is known that the entire order will arrive on a truck in 6 days. Currently, the company is ordering 500 units each time an order is placed. What level of safety stock would give a reorder point of 60 units?     4) _______

A) 12    B) 14     C) 22    D) 10    E) 18

please i need an answer that will nail these questions.

Explanation / Answer

1.C and D both are right.

Choose C in case of only one correct.

2.A

3. C

4.A

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