General Hospital Uses Disposable Diapers at a Rate of 200

question 11

Multiple Choice

General Hospital uses disposable diapers at a rate of 200 per day,with a standard deviation of 20.To place and receive a replenishment of diapers from the third-party logistics provider typically takes three days.The hospital never wants to run out of diapers,so it holds enough safety stock to ensure 99.9 percent availability.Hospital purchasing managers order diapers along with other items every 30 days.It is time to place an order,and there are 800 diapers on hand.How many units should be ordered? (Pick the closest answer.)

• A)5,800
• B)5,852
• C)5,252
• D)5,817

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Definitions:

Sample Size

The number of observations or data points that are collected from a subset of a larger population for the purposes of statistical analysis.

Pragmatic Concerns

Practical considerations or limitations that affect how research or a policy can be implemented.

Type II Error

A statistical error that occurs when failing to reject a false null hypothesis; also known as a false negative.

α

The significance level in hypothesis testing, typically representing the probability of committing a Type I error.