An example of stochastic demand might be: "The daily demand for milk is normally distributed with a mean of 150 gallons and a standard deviation of 15 gallons."

Question

Quizplus · Accepted Answer

Stochastic demand refers to random or uncertain demand. The statement given in the example describes a normal distribution of daily milk demand with a mean and standard deviation, which is a common way of modeling stochastic demand.

An Example of Stochastic Demand Might Be: "The Daily Demand