Question: Using an example where the standard deviations of two demand points were 3 and 4, respectively. For the combined demand point, it was 5. What

Using an example where the standard deviations of two demand points were 3 and 4, respectively. For the combined demand point, it was 5. What assumption about these two demand streams makes this calculation correct? What might cause the impact of the risk pooling be not as large as suggested by this calculation?

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