Appointments in a Medical Office Are Scheduled Every 15 Minutes

question 20

Essay

Appointments in a medical office are scheduled every 15 minutes.Throughout the day,appointments will be running on time or late,depending on the previous appointment only,according to the following matrix of transition probabilities: $$\begin{array} { c | c c } \text { Previous } &{ \text { Next Appointment } } \\\text { Appointment } & \text { On Time } & \text { Late } \\\hline \text { On Time } & .75 & .25 \\\text { Late } & .30 & .70\end{array}$$
a.The day begins with the first appointment on time. What are the state probabilities for periods 1, 2, 3 and 4?
b.What are the steady state probabilities?

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Definitions:

Materials Price Variance

The difference between the actual cost of direct materials and the standard cost, multiplied by the actual quantity of materials purchased.

Labor Rate Variance

The difference between the expected cost of labor per unit of production and the actual cost, often used to identify efficiency and wage rate changes.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred and the standard cost allocated for the actual production volume, resulting from efficiency in variable overhead resource usage.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the standard cost of variable overhead allocated for the actual production level.