Question

In: Statistics and Probability

Data taken from "Validating Medical Equipment Repair and Maintenance Metrics...." Participant/ Service Cost (millions) / Acquisition...

Data taken from "Validating Medical Equipment Repair and Maintenance Metrics...."

Participant/ Service Cost (millions) / Acquisition Cost (millions)

A 1.7,  49

B 2.96,  58

C 2.02,  48

D 1.5, 23

E 2.57, 45

F 8.3, 131

a) In using data in context mentioned above, which data is the independent variable (ie. x-axis) and why?

b) What is the predicted service cost for an acquisition cost of $90million along with its associated 95% prediction (confidence) interval?

c) Should you consider using this model to predict service costs of very inexpensive medical equipment purchases (eg. acquisition costs of much less than $1million.) ?

Solutions

Expert Solution

orchestra answered 1 year ago
Next > < Previous

Related Solutions

Seven metrics The following data were taken from the financial statements of Woodwork Enterprises Inc. for...
Seven metrics The following data were taken from the financial statements of Woodwork Enterprises Inc. for the current fiscal year. Assuming that there are no intangible assets. Property, plant, and equipment (net) $ 5,000,000 Liabilities: Current liabilities $ 400,000 Mortgage note payable, 5%, ten-year note issued two years ago 3,600,000 Total liabilities $4,000,000 Stockholders' equity: Preferred $1 stock, $10 par (no change during year) $1,000,000 Common stock, $5 par (no change during year) 2,000,000 Retained earnings: Balance, beginning of year...
Seven metrics The following data were taken from the financial statements of Woodwork Enterprises Inc. for...
Seven metrics The following data were taken from the financial statements of Woodwork Enterprises Inc. for the current fiscal year. Assuming that there are no intangible assets. Property, plant, and equipment (net) $ 5,000,000 Liabilities: Current liabilities $ 400,000 Mortgage note payable, 5%, ten-year note issued two years ago 3,600,000 Total liabilities $4,000,000 Stockholders' equity: Preferred $1 stock, $10 par (no change during year) $1,000,000 Common stock, $5 par (no change during year) 2,000,000 Retained earnings: Balance, beginning of year...
Seven metrics The following data were taken from the financial statements of Woodwork Enterprises Inc. for...
Seven metrics The following data were taken from the financial statements of Woodwork Enterprises Inc. for the current fiscal year. Assuming that there are no intangible assets. Property, plant, and equipment (net) $1,689,600 Liabilities: Current liabilities $210,000 Mortgage note payable, 10%, ten-year note issued two years ago 1,056,000 Total liabilities $1,266,000 Stockholders' equity: Preferred $4 stock, $100 par (no change during year) $949,500 Common stock, $10 par (no change during year) 949,500 Retained earnings: Balance, beginning of year $1,012,000 Net...
Seven metrics The following data were taken from the financial statements of Woodwork Enterprises Inc. for...
Seven metrics The following data were taken from the financial statements of Woodwork Enterprises Inc. for the current fiscal year. Assuming that there are no intangible assets. Property, plant, and equipment (net) $ 5,000,000 Liabilities: Current liabilities $ 400,000 Mortgage note payable, 5%, ten-year note issued two years ago 3,600,000 Total liabilities $4,000,000 Stockholders' equity: Preferred $1 stock, $10 par (no change during year) $1,000,000 Common stock, $5 par (no change during year) 2,000,000 Retained earnings: Balance, beginning of year...
Seven metrics The following data were taken from the financial statements of Woodwork Enterprises Inc. for...
Seven metrics The following data were taken from the financial statements of Woodwork Enterprises Inc. for the current fiscal year. Assuming that there are no intangible assets. Property, plant, and equipment (net) $ 5,000,000 Liabilities: Current liabilities $ 400,000 Mortgage note payable, 5%, ten-year note issued two years ago 3,600,000 Total liabilities $4,000,000 Stockholders' equity: Preferred $1 stock, $10 par (no change during year) $1,000,000 Common stock, $5 par (no change during year) 2,000,000 Retained earnings: Balance, beginning of year...
The following cost and inventory data are taken from the accounting records of a Company for...
The following cost and inventory data are taken from the accounting records of a Company for the year just completed: Costs incurred: Direct labor cost ................................................... $140,000 Purchases of raw materials .................................. $236,000 Manufacturing overhead ...................................... $160,000 Advertising expense ............................................. $180,000 Sales salaries ....................................................... $100,000 Depreciation, office equipment ............................ $6,000 Inventories: Beginning the Year End the Year Raw materials ............................ $14,000 $30,000 Work in process .......................... $20,000 $10,000 Finished goods ............................ $40,000 $70,000 Required: 1. Prepare the cost of goods...
The following cost and inventory data are taken from the accounting records of a Company for...
The following cost and inventory data are taken from the accounting records of a Company for the year just completed: Costs incurred: Direct labor cost ................................................... $140,000 Purchases of raw materials .................................. $236,000 Manufacturing overhead ...................................... $160,000 Advertising expense ............................................. $180,000 Sales salaries ....................................................... $100,000 Depreciation, office equipment ............................ $6,000 Inventories: Beginning the Year End the Year Raw materials ............................ $14,000 $30,000 Work in process .......................... $20,000 $10,000 Finished goods ............................ $40,000 $70,000 Required: 1. Prepare the cost of goods...
Consider the following data on the estimated cost (in millions of dollars) resulting from traffic congestion...
Consider the following data on the estimated cost (in millions of dollars) resulting from traffic congestion for different urban areas. The following are the data for the 13 largest U.S. urban areas. Urban Area Total Cost (millions of dollars) New York 16 Los Angeles 13 Chicago 7 Washington, D.C. 5 Houston 5 Dallas, Fort Worth 4 Detroit 4 Miami 4 Phoenix 4 Philadelphia 4 San Francisco 3 Boston 3 Atlanta 3 (a) Calculate the mean and standard deviation for this...
Data from service records show that the time to repair a certain machine is normally distributed with a mean of 65 min
Data from service records show that the time to repair a certain machine is normally distributed with a mean of 65 min and a standard deviation of 5 min. Estimate how often it will take more than 75 min to repair a machine.
The following cost and inventory data are taken from the accounting records of Mason Company for...
The following cost and inventory data are taken from the accounting records of Mason Company for the year just completed: Costs incurred: Direct labor cost ................................................... $70,000 Purchases of raw materials .................................. $118,000 Manufacturing overhead ...................................... $80,000 Advertising expense ............................................. $90,000 Sales salaries ....................................................... $50,000 Depreciation, office equipment ............................ $3,000 Beginning of the year End of the year    Inventories: Raw materials ............................ $7,000 $15,000 Work in process .......................... $10,000 $5,000 Finished goods ............................ $20,000 $35,000 1. Prepare a schedule...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT