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## 24 Jan Quantitative Analysis & Decision Making SU01

12443This week addresses many topics, from continuously distributed variables to statistical sampling plans and confidence interval construction. The questions that follow test your understanding of the statistical concepts introduced this week.
Review the important themes within the sub questions of each bullet point. The sub questions are designed to get you thinking about some of the important issues. Your response should provide a succinct synthesis of the key themes in a way that articulates a clear point, position, or conclusion supported by research.
• You are an inventory manager working for a large online retailer. As with any retailer, inventory control is one of the critical success factors for the organization. Having too little inventory risks the loss of sales when your company is unable to fulfill an order. However, too much inventory imposes unnecessary costs on the organization. Often, one of the most important pieces of information that can be used to determine how much inventory to have on hand is the rate at which demand occurs for the product.
o Determine what information you would need to construct a confidence interval for the demand that will occur during a month.
o Analyze how the numbers of such a confidence interval might influence the level of inventory that the organization chooses to carry. Support your discussion with relevant examples, research, and rationale.
The final paragraph (three or four sentences) of your initial post should summarize the one or two key points that you are making in your initial response.
Submission Details:
• Your posting should be the equivalent of 1 to 2 single-spaced pages (500–1000 words) in length.

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