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STOCHASTIC BLOCK

Like most people when addressed with this most wonderful word from the English language I indeed had to look it up in a  dictionary!
 
The definition of  Stochastic is simply  RANDOM.
 
I was asked  to explain a recent SAP MM exam sample question...
 
The following values are defined  for the stochastic block:

    Threshold value: 1000£

    Percentage: 40

 

For an invoice value of 500£ what is the probability that the invoice will be blocked Stochastically ?

For an invoice value of 1000£ what is the probabilty that the invoice will be blocked Stochastically ?

For an invoice value of 5000£ what is the probablility that the invoice will be blocked Stochastically ?

 

Answers with explanation will be posted  on Friday.


Posted By : WENDY WHITE
On : 17/11/2014

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