Question: Suppose a company uses the same demand distribution for two of the 10 products, i.e., each has a mean of 25 units per week and

Suppose a company uses the same demand distribution for two of the 10 products, i.e., each has a mean of 25 units per week and a standard deviation of 20 per week. They observe that the coefficient of variation of total demand for these 2 products is 0.70. Which of the following is true?

  • A. There is not enough information to answer this question
  • B. Demands for these products are negatively correlated with each other.
  • C. Demands for these products are positively correlated with each other.
  • D. Demands for these products are independent.

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