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Riverview Regional Medical Center: an Hma Facility

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MATH 540: Quantitative Methods

JET Copies Case Problem

Assignment: 1

Strayer University

Winter Quarter 2012

Days to repair method is based on discrete probability distribution that assigns a probability to the number of days provided and thus assumes results in clearly separated values. The model makes use of the discrete distribution to calculate the central tendency and this may also be referred to as weighted average. The model determined mean multiplying the number of days with the corresponding probability and the results were summed up. The results indicate that once a copier broke down, it requires 2.25 days to repair it.

Interval between breakdowns also utilized discrete distribution in order to come up with interval period. The graph provided indicated that 0.33 (y axis) is a function of 6 (x axis) and this enabled the model to calculate for M which is uniformly distributed. C was concluded to be 0 since the graph starts from the origin (f(x) = mx). The model utilizes mean to determine the number of weeks between each breakdown. The results show that the copier would breakdown after every 5 weeks.

Lost revenue model calculates the amount of revenue that is lost every time the copier breaks down. An average of the number of copies that are expected to be made is used to calculate for lost revenue because case information shows uniform probability distribution between the number of copies made. The model multiplies the average copies, price and the number of days required to repair thus deriving lost revenue per breakdown. The model also calculates the number of breakdowns per year then multiplies this figure with lost revenue per breakdown. Lost revenue was determined to be $1,125 while annual loss is $11, 250.

I am highly confident that the results are good and give accurate figures that reflect. Statistical analysis was used to determine the required variables. The limitations of the study include the fact that will utilize probability and not actual figures. Probability of most variables is not accurately determined and it is concluded that probability is accurately distributed.

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