Product Xs demand is normally distributed with mean 150 and standard deviation 50. Product Ys demand is

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Product X’s demand is normally distributed with mean 150 and standard deviation 50. Product Y’s demand is also normally distributed with a mean of 150 and a standard deviation of 50. The sum of demand for these two products is normally distributed with a mean of 300 and a standard deviation of 50. Which of the following results is most likely? 

a. Demands for these products are negatively correlated. 

b. Demands for these products are positively correlated. 

c. Demands for these products are independent. 

d. It is not possible to determine with this information the correlation of these products.

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Operations Management

ISBN: 9781260547610

2nd International Edition

Authors: Gerard Cachon, Christian Terwiesch

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