The weekly demand for an item in a retail store follows a uniform distribution over the range 70 to 83. What would be the weekly demand if its corresponding computer-generated value is 0.5?
A)90.1
B)83
C)76.5
D)50.85

Question

Quizplus · Accepted Answer

To find the demand corresponding to a value of 0.5 in a uniform distribution, we use the formula:
Demand = (Value - Minimum)/(Maximum - Minimum) * Range + Minimum
Substituting the given values, we get:
Demand = (0.5 - 70)/(83 - 70) * (83 - 70) + 70
Demand = ( - 69.5/13) * 13 + 70
Demand = 76.5
Therefore, the weekly demand would be 76.5.

The Weekly Demand for an Item in a Retail Store