Which one of the following statements is FALSE? If there is no prior demand data available for a product, one can construct an empirical distribution for demand using A/F ratios of other product To use the Newsvendor model, a demand forecast is not sufficient. One needs a demand distribution to model the uncertainty. If a company conducts an A/F ratio analysis of prior products and finds that the average A/F ratio is 1.05, it means the company has a tendency to overestimate the demand (ie. actual demand is likely to be lower than the forecast). When applying the Newsvendor model, one can use the Empirical distribution if Normal distribution (or others) does not fit the data.