1. A trend chart was produced by RSPE software and is shown below. Profit was defined as the output variable. In reference to the chart below, which of the following statements is true?
The best choice is an order quantity of 70 because the range of possible results is the greatest.
An order quantity of 40 is the lowest risk option to select.
The highest expected value result is when an order quantity of 65 is selected.
An order quantity of $65 is the most that can be expected.
All of the above.
2. Which of the following statements is true?
The normal distribution is a good choice when all values within a range are equally likely.
The triangular distribution has a fixed upper and lower bound.
The normal distribution has a fixed upper and lower bound.
The exponential distribution is not useful for describing the time between random events.
The normal distribution describes the number of times an event occurs in a fixed number of trials.