What is the preventive maintenance cost

Assignment Help Applied Statistics
Reference no: EM13523091

The manager of Cheryl's hospital is determining how often to perform preventive maintenance. When the testing machine fails, it costs the company $15,000 in lost production. However, the cost of preventive maintenance is somewhat expensive. The cost of performing preventive maintenance is $3,000.

Weeks between Preventive Maintenance

Average Number of Breakdowns between Preventive Maintenance

1

0.039

2

0.110

3

0.131

4

0.151

5

0.176

a) Which interval do you recommend for performing preventive maintenance? Base this recommendation on the economics as presented.

b) Suppose that the company has outsourced the preventive maintenance work. The cost of the preventive maintenance work is negotiable. With everything else being the same as provided above, what is the preventive maintenance cost that makes the manager indifferent between a one week and a two week preventive maintenance strategy? Assume that the preventive maintenance costs the same regardless of the weeks between preventive maintenance.

Reference no: EM13523091

Questions Cloud

Explain the relationship between deltag and qp : What is the relationship between deltaG, Qp, and Kp for a reaction involving gases
Never used an accountant services : In the early part of 2015, the partners of Hugh, Jacobs, and Thomas sought assistance from a local accountant. They had begun a new business in 2014 but had never used an accountant's services.
How high up was the elevator when the bolt came loose : A bolt comes loose from underneath an elevator that is moving upward at a speed of 5.9 m/s. The bolt reaches the bottom of the elevator shaft in 2.5 s. How high up was the elevator when the bolt came loose
Theories of determinism-john calvin-hegel-sigmund freud : Theories of Determinism: John Calvin. Theories of Determinism: Isaac Newton. Theories of Determinism: Hegel. Theories of Determinism: Sigmund Freud. Theories of Determinism: Williams James. Theodicy:
What is the preventive maintenance cost : What is the preventive maintenance cost that makes the manager indifferent between a one week and a two week preventive maintenance strategy?
What is their power in diopters : Ordinary glasses are worn in front of the eye and usually 2.00cm in front of the eyeball. What is their power in diopters
Define what is the molarity of a solution made by dissolving : What is the molarity of a solution made by dissolving 6.64 g of sodium acetate in water and diluting to 750. mL. (molar mass NaC2H3O2 is 82.0 g/mol.)
Evaluate the focal length of the concave mirror : A light bulb is placed 18.3 cm in front of a concave mirror. When the concave mirror is replaced by a plane mirror in the same location,  Calculate the focal length of the concave mirror
How many days should one order last on average : What is the expected total inventory holding and ordering cost per year and how many days should one order last on average?

Reviews

Write a Review

Applied Statistics Questions & Answers

  Write your own newspaper article

Write your own newspaper article for the study with at least one appropriate table or graph.

  Use correlation coefficient to identify collocations

Would there be a possibility to use the correlation coefficient to identify collocations and Compare with the Chi2 test and How could we maybe do that

  Quantitative analysis for decision making class please

quantitative analysis for decision making class please write for each summarizing with highlights of the review items

  Provide a managerial report - gulf real estate properties

Each condominium is classified as Gulf View if it is located directly on the Gulf of Mexico or No Gulf View if it is located on the bay or a golf course, near but not on the Gulf.

  Writenbspa 2 page critique of an online user manual you can

writenbspa 2 page critique of an online user manual. you can download a usernbspmanualuser guide for a product of your

  Finding a statistically significant relationship increases

Explain the relationship between sample size and the likelihood of a statistically significant difference between measured values of two groups. In other words, explain why, all else being equal, as sample size increases the likelihood of findi..

  Complete the analysis of variance

Complete the analysis of variance. At a .05 level of significance, is there a significant difference between the treatments?

  Is there a significant correlation

What test or tests would you use to rule out chance from causing the apparent differences in these data and is there a significant correlation?

  In table 2 in p 175 hatchett and park 2004 presented the

in table 2 in p. 175 hatchett and park 2004 presented the correlations among optimism lot-r total and positive items

  Interpreting statistical data

The researchers used the available survey data and summarised the nature of the car accidents and if a mobile phone was being used by the driver either during (or immediately before) the accident

  Draw all of venn diagrams

Draw all of Venn Diagrams - Using circle Venn Diagrams and What are all of the subsets of U?

  Which data set has the lowest standard deviation

Create the second data set by inserting eight data points all very close to 10 on the number line and record the standard deviation of this data set, and then delete that data set.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd