Concept explainers
Which of the following is NOT true about the distribution function for a
- a. It ranges from 0 to 1.
- b. It increases as the quantity increases.
- c. It generally has a bell shape when graphed.
- d. It returns the probability that the outcome from the normal distribution is a certain quantity or lower.
To identify: The statement that is not true regarding the distribution function of a normal distribution.
Explanation of Solution
Correct option: (c)
Correct answer:
It generally has a bell shape when graphed.
Justification:
Normal distribution is a common continuous probability distribution. The normal distribution graph depicts a bell shaped graph normally. The meaning of the graph is that data present near the mean occur more frequently than the data that are present far away from the mean. It is also known as the bell-curve. But, the distribution function is always increasing and never has a bell shape, only the density function has the bell shape.
Want to see more full solutions like this?
Chapter 13 Solutions
OPERATION MANAGEMENT
Additional Business Textbook Solutions
Operations Management
Business in Action
Business in Action (8th Edition)
Loose-leaf for Operations Management (The Mcgraw-hill Series in Operations and Decision Sciences)
Operations Management: Processes and Supply Chains (11th Edition)
Operations Management: Sustainability and Supply Chain Management (12th Edition)
- Write “TRUE” if the statement is correct and “FALSE” if the statement is incorrect. (a-f is already answered)g. The second main step of Monte Carlo simulation is random variable generation.h. Random number generation is an optional step in Monte Carlo simulation.i. The probability distribution of random numbers in a Monte Carlo simulation should be: (–1,1] .arrow_forwardWhich of the following interpretations is correct about risk versus uncertainty? Risk is about the known future while uncertainty is about the unknown future Tossing a coin is an example of uncertainty while pandemic is an example of risk Risk is about the unknown unknowns while uncertainty is about the known unknowns Risk is about random variables with estimable chances and possible outcomes while uncertainty is about variables with unknown chances and/or unknown possible outcomesarrow_forwardWhat is NOT true about normal distribution? We can expect approximately 99.7% of the possible outcomes to fall within three standard deviations above and below the mean We can expect approximately half of the possible outcomes to be positive and half to be negative We can expect approximately 95% of the possible outcomes to fall within two standard deviations above and below the mean It is completely defined by two numbers: mean and standard deviation It is bell shaped and symmetricarrow_forward
- Which of the following statements is correct regarding the EMH form? Select one: None of the answers are correct If the market is weak-form efficient, then it is also semistrong and strong-form efficient. If the market is semistrong form efficient, then it is also strong form efficient If a market is strong-form efficient, it is also semistrong and weak form efficient If the market is strong-form efficient, it is also semistrong but not weak-form efficientarrow_forwardIdentify which type of analysis best fits each of the following descriptions. Requires the use of a computer Allows for probabilities to be assigned Includes the use of break-even analysis options; SCENARIO SENSITIVITY SIMULATIONarrow_forwardWhich of the following statements is correct for the Black-Scholes model? A) The price of an American call written on a stock is: c = SN(d1)-Ke-rTN(d2) B) The stock price at a future point in time follows a log-normal distribution. C) The continuously compounded return on the stock follows a log-normal distribution. D) Black-Scholes prices may allow for arbitrage opportunities. Please explain and justify your choice.arrow_forward
- Which of the following is NOT a determinant of the demand for good X?arrow_forwardBad simulations Explain why each of the followingsimulations fails to model the real situation properly:a) Use a random integer from 0 through 9 to representthe number of heads when 9 coins are tossed. b) A basketball player takes a foul shot. Look at a ran-dom digit, using an odd digit to represent a good shot and an even digit to represent a miss.c) Use random numbers from 1 through 13 to represent thedenominations of the cards in a five-card poker hand.arrow_forwardUsing @risk draw a normal distribution with a mean of 500 and a sd of 100. What is the probability the random number is less than 450arrow_forward
- A company uses 85 circuit boards a day in a manufacturing process. The person who ordersthe boards follows this rule: Order when the amount on hand drops to 625 boards. Orders are delivered approximately six days after being placed. The delivery time is normal with a mean ofsix days and a standard deviation of 1.10 days. What is the probability that the supply of circuitboards will be exhausted before the order is received if boards are reordered when the amount onhand drops to 625 boards?arrow_forwardUse @RISK to draw a triangular distribution with parameters 300, 500, and 900. Then answer the following questions.a. What are the mean and standard deviation of this distribution?b. What are the 5th and 95th percentiles of this distribution?c. What is the probability that a random number from this distribution is less than 450?d. What is the probability that a random number from this distribution is greater than 650?e. What is the probability that a random number from this distribution is between 500 and 700?arrow_forwardYou are a new salesperson at a large software manufacturing firm. It is three weeks from the end of the sales quarter and you and your sales manager have both already met your sales quotas for the quarter. In addition, you just closed another deal with a new customer for $100,000 worth of software and customer service. This order would put you way over your sales quota for the current quarter. Your manager suggests that you hold this new order so it gets recorded against next quarter. She explains that because sales during the next three months tend to slow down, salespeople frequently miss their quotas and associated sales bonuses for that quarter. Holding this large order to next quarter would help you get an excellent start and almost guarantee that you meet your quota. What would you do?arrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,