Question

To derive the optimal order quantity for the true demand distribution from the optimal order quantity for the standard normal distribution, multiply the ________ of the true demand distribution by the optimal order quantity for the standard normal distribution.

Answer 1

Standard deviation

Step-by-step explanation:

A standard normal distribution is the distribution that occurs when a normal random variable has a mean of zero and a standard deviation of one

When we multiply the standard deviation of the true quantity by the optimal order quantity for the standard normal distribution, we will obtain the optimal order quantity of the demand distribution