Conducting a research project for the fire service. Need to determine if it woul
ID: 3039800 • Letter: C
Question
Conducting a research project for the fire service. Need to determine if it would be profitable for the fire department to take over emergency medica services from a privately contracted ambulance service. I will need to use statistics to analyze my date. data such as number of medical aid calls per year, start up cost, insurance, new hires. I have the data i need my question is what would be the best formula to use to show whether or not this will be profitable or not profitable for the department to take over the service. I will need to state the null and alternate hypothesis and use specific formula to detrmine this. Any help would be appreciated.
Thank you
Brian purcell
Explanation / Answer
Hey,
statistics can be used to calculate how individual variable would behave given their data. to find out if the service would be profitable we will have to calculate the revenue it will generate givem the medical aid calls per year, start up cost, insurance, new hires( which you will have to estimate using statistics), yearly profit will be required to calculte and then costs would be subtracted.
Profit column= (Number of medical calls * per call contract payment) - (startup cost)/ (number of calls)- (insurance cost/per ride)- (salaries/ no of calls)
We can calculate this column for all values of medical calls.
and then use stats
for an ideal business to become profitable it takes 3-4 years,
so we use this logic to use the formulae as = Startup cost / per year earning = 3~4
using Z statistics hypothesis can be proved.
i hoped this solved your querry
Thanks