The Length of Time Patients Must Wait to See a Doctor

question 120

Short Answer

The length of time patients must wait to see a doctor in a local clinic is uniformly distributed between 15 minutes and 2 1/2 hours.
a.What is the probability of a patient waiting exactly 50 minutes?
b.What is the probability that a patient would have to wait between 45 minutes and 2 hours?
c.Compute the probability that a patient would have to wait over 2 hours.
d.Determine the expected waiting time and its standard deviation.

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Definitions:

Variable Cost

Costs that change in proportion to the level of production or activity.

Operating Leverage

Refers to the extent to which fixed costs are used in a company's operations; high operating leverage means a larger proportion of fixed costs, leading to greater potential for profit variability with changes in sales volume.

Pretax Net Income

The amount of income that a company has earned before any taxes have been deducted.

CVP Analysis

Cost-Volume-Profit Analysis, a financial tool used to determine how changes in cost and volume affect a company's operating income and net income.