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American Hospital Supply is a medical equipment & product distributor and supplier. The company has installed its online terminals in hospitals of New York City

American Hospital Supply is a medical equipment & product distributor and supplier. The
company has installed its online terminals in hospitals of New York City so that supplies
and drugs can be purchased as the need arises. These terminals have an average
breakdown rate of 3.5 per week (one week =7 days). The company has a repair
technician in its office of New York City to repair the terminals. The average time
required to repair a terminal varies somewhat but takes average of 0.8 days with a
standard deviation of 0.2 days.
On average, how much time (in days) transpires from the time a terminal breaks down to
the time it is repaired (i.e. functions normally again).
Group of answer choices
0.1417
0.5417
0.6328
0.2833
1.0833
a number different from all the above
Suppose American Hospital Supply estimates it loses $600 a day in productivity and
efficiency for each terminal that is out of service. How much should the company be
willing to pay to increase service capacity to the point where an average of 14 terminals
a week could be repaired with the standard deviation of average service time being the
same? Keep two decimals after rounding for your answer. Hint: the question is the same
as how much loss in dollar value a day in productivity and efficiency can be saved by
being able to repair 14 terminals a week.)
Group of answer choices
$82.16
$98.43
$126.33
$130.98
$146.04
$163.82
a value different from all the above
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