University of Phoenix

QNT 571

February 24, 3014

Professor Victor Mojica

East Mercy Medical Center Analysis The East Mercy Medical Center recently hired a new assistant administrator, given the name Dorothy Jacobs. One of her first tasks is to evaluate ways to improve the costs of their hospital management related to the patient capacity in three main hospital wards: Obstetrics, Surgery and Pediatrics. The hospital board is considering expanding their offerings of the same wards, and has allocated a total of $400,000 as budget for this project. The administrator must determine how many additional beds can best satisfy the supply and demand for all the units, considering

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We begin with Obstetrics:

P (X1 ≤ 30 + B1) ≥ 0.95

24 + 1.65*6.1 ≤ 30 + K1

K1≥ 4.065

We recommend purchasing at least 4.3 beds; since we cannot have a 0.065 bed, we conclude 5 beds are required at a cost of 22,000*5=110,000. A graph of the probability follows, on Graph I.

Graph I

Student T- Distribution Graphic at a=0.05, t=09.95 for the Obstetrics Ward

We continue on to analyze the Surgery ward:

P (X2 ≤ 20 + B2) ≥ 0.95

13 + 1.65*4.3 ≤ 20 + K2

K2 ≥ 0.095

We recommend purchasing at least 0.95 beds; since we cannot have a 0.95 bed, we conclude 1 bed is required at a cost of 26,000*1=26,000. A graph of the probability follows, on Graph II.

Graph II

Student T- Distribution Graphic at a=0.05, t=09.95 for the Surgery Ward

We finish by analyzing the Pediatrics ward:

P (X3 ≤ 30 + B3) ≥ 0.95

19 + 1.65*4.7 ≤ 24 + K3

K3≥ 2.755

We recommend purchasing at least 2.75 beds; since we cannot have a 0.75 bed, we conclude 3 beds are necessary, at a cost of 15,500*3=46,500. A graph of the probability follows, on Graph