An Internal Audit of a Hospital's Medical Laboratory Found 108

question 8

Multiple Choice

An internal audit of a hospital's medical laboratory found 108 errors in testing of patient specimens for one month or 30 days. Each day 400 patients were tested using an average of 3.2 tests per patient. What is the dpmo for this situation?

• A) Less than 500
• B) More than or equal to 500 but less than 1,000
• C) More than or equal to 1,000 but less than 2,000
• D) More than or equal to 2,000

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Definitions:

Internal Rate

Often referring to the internal rate of return (IRR), it is the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Capital Investment

Funds spent by a company to acquire or upgrade physical assets to further its long-term goals and operations.

Present Value

The value of a future amount of money in today's dollars, calculated by applying a discount rate to account for the time value of money.

Net Present Value

The difference between the present value of cash inflows and outflows over a period of time, used in capital budgeting to assess the profitability of investments.