Use the table below to answer the following question(s).
Below is the spreadsheet for an economic order quantity model.

Assume that the distribution of demand is normal with a mean of 20,000 and standard deviation of 2,000.
-What is the mean absolute deviation obtained from the simulation results?
A)39.10
B)24.56
C)58.75
D)46.36

Question

Use the table below to answer the following question(s).
Below is the spreadsheet for an economic order quantity model.
  
Assume that the distribution of demand is normal with a mean of 20,000 and standard deviation of 2,000.
-What is the mean absolute deviation obtained from the simulation results?
A)39.10 
B)24.56 
C)58.75 
D)46.36

Quizplus · Accepted Answer

The mean absolute deviation is calculated as the average of the absolute differences between each data point and the mean of the data set. Based on the simulation results provided, the correct mean absolute deviation is 39.10.

Use the Table Below to Answer the Following Question(s)