Question: Normal distribution N( , ^2) is often used to represent a demand forecast. Note that, according to this distribution, there is a nonzero probability of
Normal distribution N( , ^2) is often used to represent a demand forecast. Note that, according to this distribution, there is a nonzero probability of having negative value of the demand, which is clearly impossible in reality. This discrepancy between reality and the mathematical model for normal distribution can be simply ignored as long as that probability is very small. What condition is necessary for this discrepancy to be ignored?
Group of answer choices
a) mu and sigma are the same.
b) mu is much larger than sigma.
c) mu is very small. d) mu is much smaller than sigma.
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