Purchase Solution

Dr. Izobel Stevens is supervising physician at the Westbury

Not what you're looking for?

Ask Custom Question

Dr. Izobel Stevens is supervising physician at the Westbury HMO, a New York City-based medical facility serving the poor and indigent. Stevens is evaluating the cost-effectiveness of a preventive maintenance program, and believes that monthly downtime on the packaging line caused by equipment breakdown is related to the hours spend each month on preventive maintenance.

A. Write an equation to predict next months downtime using the variables D=downtime, M= preventive maintenance, t= time, a0= constant term, and a1=regression slope coefficient. Assume that downtime in the forecast (next) month decreases by the same percentage as preventive maintenance increased during the month preceding the current one.

B. If 40 hours were spent last month on preventive maintenance and this month's downtime was 500 hours, what should downtime be next month if preventive maintenance this month is 50 hours? Use the equation developed in part A.

Purchase this Solution

Solution Summary

The solution provides detailed instructions and explanations for the problem.

Solution Preview

a. D = -M +a1 x t + a0.
In this equation we see that Downtime is a function of time (it is a cumulative function of ...

Purchase this Solution


Free BrainMass Quizzes
Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.