Question

Statement 1: If the demand is flat, the penalty will be exponential
Statement 2: If the demand is flat, the penalty will be linear
(a) Statement 1 is True and Statement 2 is False
(b) Statement 1 is False and Statement 2 is True
(c) Both are True
(d) Both are False​

Answer 1

Both are false

Explanation:

The answer is d part i.e. both are false because If the demand is flat then the penalty will be zero. When owning your resource, you have to pay penalty whenever your resources do not match with the instantaneous demand. Either your penalty for unused resource or suffer for penalty for missing the service delivery.  

Although the penalty cost is not an actual cost, it takes in account any excess cost of working with a particular supplier. This cost is done by adding to the purchase cost of the supplier and helps you make awarding decisions.

So, if the demand is flat, penalty is 0. If the demand is linear, a periodic provisioning is acceptance. So, if the demand is linear periodic provisioning is accepted.

Answer 2

Both are false. Option (d) is correct.

Explanation:

• If the demand is flat, the penalty is zero.
• In electricity bill demand value is compared to contracted power.
• If the demand value is higher than contracted power, the penalty is exponential.
• Whenever the demand will be increases, the penalty also increases.
• Therefore, if the demand is flat, the penalty will be neither exponential nor linear.
• Penalty is always proportional to demand.
• Electricity bill is the example of demand and penalty.
• If the demand is slightly increses, the penalty will be linear.

To Learn More...

1.UTIVA TV June

Statement 1: If the demand is flat, the penalty w be exponential

Statement 2: If the demand is flat, the penalty will be linear

(a) Statement 1 is True and Statement 2 is False

(b) Statement lis False and Statement 2 is True

(c) Both are True

(d) Both are False​

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