- This topic has 7 replies, 2 voices, and was last updated 2 years ago by
.
- Posts
The performance of a publicly funded hospital is monitored using measures based upon the ‘ three E’s ‘ . The most important performance measure is considered to be the achievement of hospital targets for the successful treatment of patients.
Which of the three Es best describes the above measure?
– Effectiveness
– Economy
– Externality
– EfficiencySir it’s kinda easy question, but still i wanted to confirm because i read your answer to this question in similar post but in different forum, general forums
You replied it’s effectiveness, sir wouldn’t it be efficiency? Since it’s comparing with input we achieved maximum output, successfully treated patient, if it would’ve mentioned that treated patient’s mortality rate is being reduced, then it would be considered as effectiveness am i correct sir?
Also this question
A company used government produced data that showed the economy grew by 4.6% in the last year.
Which of the following describes the data used by the company?
– Primary and continuous
– Secondary and discrete
– Secondary and continuous
– Primary and discreteBecause it’s provided by govt so it’s secondary but sir wouldn’t it be secondary and continuous instead of discrete? Discrete data are those numbers which we can count but continuous data can be measured in any value while discrete can’t be, like heights 1.7 metre etc,
And in this question you replied it’s secondary and discrete, so little confused
And last question sir
A company uses the Economy Order Quantity (EOQ) model and holds no buffer inventory. Its annual cost of holding one unit in inventory has decreased.
What is the effect, if any. of this decrease in holding costs on the EOQ and on the total annual cost of placing orders?
EOQ ( ) Increase ( )Decrease ( )No effect
Total annual cost of placing order ( ) Increase ( )Decrease ( )No effect
Sir EOQ focuses on reducing costs while maintaining order quantity, and it says holding cost decrease so why does eoq reduces? It’s like we will order more only because cost reduced? But eoq is basically reorder quantity so we shouldn’t run out of inventory levels why would we order more? It should be no effect on eoq, no sir? As well as if there’s no effect on order quantity means no effect on order as well, since we are not ordering more it’s same? Correct me please sir if I’m wrong
1. It is effectiveness because the job of the hospital is to treat patients successfully. Obviously there is a cost involved and so they would also want to measure how much it was costing but it is this that would be efficiency.
2. It is discrete because the government data is not producing a range of numbers – just one specific number.
3. EOQ certainly does not focus on reducing costs while maintaining order quantity. It calculates the order quantity that makes the overall cost a minimum. If the holding cost decreases then reducing Ch in the formula will mean that the EOQ will increase. A higher EOQ means they will need fewer orders and therefore the total cost of placing orders will reduce.
Have you watched my free lectures on these areas? The lectures are a complete free course for Paper MA and cover everything needed to be able to pass the exam well.
Oh sir for the first question i was curious because even in kit, answer is efficiency
And yes sir i got it now 2nd question
3rd sir i tried similar question using formula, could you please correct me if I’m wrong, sir if ordering costs increases, i calculated eoq and holding both increases as well
If the ordering cost each time increases then they will make fewer orders of more units each time. Therefore the EOQ will be higher and automatically the annual total holding cost will be higher.
Sir i just attempted hubmock and i got this same question, of describing the data used by company economy grew 4.6%, sir it’s secondary and continuous because it’s about economic growth and can take on any value therefore it’s continuous, i think if it would’ve specified a certain area or town from that whole economy only than it would be discrete, am i right sir?
- The topic ‘F2 theory practice questions’ is closed to new replies.