2. Consider the following manual simulation of machine breakdowns and repair. Time between breakdowns, Repair time, у (days) Cost Breakdowns x (weeks) ($2,000 y) 1 4 $2000 $4000 1 2 5.7 3 5.5 2 $4000 $2000 $4000 $4000 4 2.5 1 5 6 5.2 5.8 7 1.6 1 $2000 2.3 1.2 3.3 $4000 $4000 8. 9 10 $4000 What operating characteristics can be obtained from this simulation? 22 2/22
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- The data below have been taken from the cost records of the Halifax General Hospital. The data relate to the costs of admitting patients at various levels of patient activity: Month Number of Patients Admitting Admitted Department CostsMay..................................................................... 3,600 $ 29,400June .................................................................... 3,800 $ 28,700July ...................................................................... 2,900 $ 27,400August ................................................................ 3,200 $ 28,000September .......................................................... 3,300…The table below shows monthly data collected on production costs and on the number of units produced over a twelve-month period. Month Total Production Costs Level of Activity (Units Produced) July $230,000 3,500 August 250,000 3,750 September 260,000 3,800 October 220,000 3,400 November 340,000 5,800 December 330,000 5,500 January 200,000 2,900 February 210,000 3,300 March 240,000 3,600 April 380,000 5,900 May 350,000 5,600 June 290,000 5,000 A) Using the line of best-fit, determine the company’s fixed cost per month and the variable cost per unit. (Use 0 & 5,000 ) B) In view of the department’s cost behavior pattern, which of the two methods appear more appropriate? Explain your answer.A quality control engineer studied the relationship between years of experience as a system control engineer and the capacity of the engineer to complete within a given time a complex control design including the debugging of all computer programs and control devices. A group of 25 engineers having widely differing amounts of experience (measured in months of experience) was given the same control design project. The results of the study are given in the following table with y = 1 if the project was successfully completed in the allocated time and y = 0 if the project was not successfully completed. a. Determine whether experience is associated with the probability of completingthe task. b. Compute the probability of successfully completing the task for an engineer having 24 months of experience. Place a 95% confidence interval on your estimate.
- The staff of controller of McCourt Company added the variable "pounds moved" to the ten-month data set: Month Materials Handling Cost Number of Moves Pounds Moved January $5,600 475 12,000 February 3,090 125 15,000 March 2,780 175 7,800 April 8,000 600 29,000 May 1,990 200 600 June 5,300 300 23,000 July 4,300 250 17,000 August 6,300 400 25,000 September 2,000 100 6,000 October 6,240 425 22,400 Required: 1. Using the data on material handling, use regression software such as Microsoft Excel to complete the missing data in the table below (round regression parameters to the nearest cent and other answers to three decimal places): McCourt CompanySUMMARY OUTPUT Regression Statistics Multiple R 0.999 R Square fill in the blank 491c8af8afe4f84_1 Adjusted R Square fill in the blank 491c8af8afe4f84_2 Standard Error 119.600 Observations 10 ANOVA df SS MS F Significance F Regression 2 37,768,070.16 18,884,035…The table below shows monthly data collected on production costs and on the number of units produced over a twelve month period. Month Total Production Cost Level of Activity (units Produced) July $230,000 3,500 August 250,000 3,750 September 260,000 3,800 October 220,000 3,400 November 340,000 5,800 December 330,000 5,500 January 200,000 2,900 February 210,000 3,300 March 240,000 3,600 April 380,000 5,900 May 350,000 5,600 June 290,000 5,000 Using the information above answer both questions below 1. Prepare the scatter diagram, clearly showing any outliers.2. Using the line of best-fit, determine the company’s fixed cost per month and the variable cost per unit. (Use 0 & 5,000 units.)Two pumps capable of delivering 100 hp to an agricultural application are being evaluated in a present economy study. The selected pump will only be utilized for one year, and it will have no market value at the end of the year. Pertinent data are summarized as given follows. If electric power costs $0.10 per kWh and the pump will be operated 4,000 hours per year, which pump should be chosen? Recall that 1 hp = 0.746 kW.
- The administrator of Hope Hospital has been asked to perform an activity analysis of the emergency room (ER). The ER activities include cost of quality and other patient care activities. The lab tests and transportation are hospital services external to the ER for determining external failure costs. The result of the activity analysis is summarized as follows: Activities Activity Cost Patient registration $6,400 Verifying patient information 9,600 Assignment patients 12,800 Searching/waiting for doctor 8,000 Doctor exam 4,800 Waiting for transport 17,600 Transporting patients 16,000 Verifying lab orders 14,400 Searching for equipment 8,000 Incorrect labs 12,800 Lab tests 17,600 Counting supplies 19,200 Looking for supplies 8,000 Staff training 4,800 Total 160,000 Problem 2 Instructions Prepare a Pareto chart of the ER activities. Classify the activities into…The management of BCD Inc. would like to separate the fixed and variable components of electricity as measured against machine hours in one of its plants. Data collected over the most recent six months follow:Electricity MachineMonth Cost Hours January $1,100 4,500February 1,110 4,700March 1,050 4,100April 1,200 5,000May 1,060 4,000June 1,120 4,600Required: 1. Using the method of least squares, compute the fixed cost and the variable cost rate for electricity expense. (Round estimates to the nearest cent.) 2. Compute coefficients of correlation and determinationThe general perception is that the manufacturer of the product can reduce the cost required to manufacture a single product by increasing the number of manufactured products. The following material lists the quantities of products produced by one manufacturer and the corresponding costs per product. Material: nro of products 10 20 50 100 150 200 manufacturing cost per product 9.4 9.2 9.0 8.5 8.1 7.4 a) Calculate the forecast for the product-specific manufacturing cost when a batch of 125 products has been ordered from the manufacturer.b) Estimate the variance parameter σ2 of the linear model in point a.c) Calculate the 99 percent prediction interval for the manufacturing cost per product when a batch of 110 products is ordered from the manufacturer.