Cost Forecast Modeling

question 41

Essay

Cost Forecast Modeling. Robert Romano, CEO of Rocket Science, Inc., is evaluating the cost effectiveness of the preventive maintenance program. Romano believes that the monthly downtime of the accelerator line due to equipment breakdown is related to the hours spent each month on preventive maintenance.
A. Write an equation to predict next month's downtime using the symbols D = downtime, M = preventive maintenance, t = time, a0 = constant term, a1 = regression slope coefficient, and assuming that downtime in the forecast month decreases by half of the percentage increase in preventive maintenance during the preceding month.
B. If 60 hours were spent last month on preventive maintenance and this month's downtime was 40 hours, what should downtime be next month if preventive maintenance this month is 75 hours? Use the equation developed in part A.

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Definitions:

AAfPE

The American Association for Paralegal Education, an organization promoting quality paralegal education and training.

ABA

An acronym that stands for the American Bar Association, a professional organization for lawyers in the United States.

Paralegal Education

An academic program or training that prepares students to assist lawyers in their legal work, including research, drafting documents, and case management.

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The part of law that deals with the rights and duties of persons and defines the legal relationship among them.