Silver's Gym Case Paper
MEMO
DATE: March 21st, 2014
TO: Silver’s Gym, Inc.
FROM: Team Eight Consulting, Inc.
RE: Analysis of Death within the Building Premises
Per your request, this is the Analysis of Death within the building installations. If you need further assistance, please do not hesitate to ask.
Executive Summary
The following document encloses an analysis of the situation occurred at Silver’s Gym, Inc. of the deceased of Tommy Jetson, the husband of a customer within the premises of Silver’s Gym. Tommy Jetson suffered a sudden cardiac arrest (SCA) in the lobby of the gym while waiting for his wife. A Sylver’s employee requested to call Emergency Medical Service (EMS); in the meantime, the gym’s employee …show more content…
The formula for the expected value E(X) is as follows,
E(X) = ΣxP(x)
E(X) = 2500+ (.04)(1000000) = $42,500
Even though the cost of purchasing the defibrillator is only $2,500, the chance of the losing a lawsuit (4%) with up to $1,000,000 in cost means that owning a defibrillator actually costs $42,500. This means the amount to owning a defibrillator is much higher than just the cost, and must be considered under the number of circumstances if the having of this defibrillator is worth the cost. It is important to be aware that by having a AED, is not 100 percent sure that all incidents will be successfully done. The probability to die with a no AED is 80 percent. However the probability of improper use is 3 percent.
Under the scenario at which Silver’s Gym does not have a defibrillator, a total of 30 patients out of the 100 who suffer cardiac incidents will die; meaning 70 percent of the patients will live. With a defibrillator, there is an 80 percent chance that a patient who died without a defibrillator will live, but a 3 percent chance that improper use of the defibrillator will kill a patient who would have lived otherwise. The expected value, E(X), of number of lives saved by the defibrillator is as
DATE: March 21st, 2014
TO: Silver’s Gym, Inc.
FROM: Team Eight Consulting, Inc.
RE: Analysis of Death within the Building Premises
Per your request, this is the Analysis of Death within the building installations. If you need further assistance, please do not hesitate to ask.
Executive Summary
The following document encloses an analysis of the situation occurred at Silver’s Gym, Inc. of the deceased of Tommy Jetson, the husband of a customer within the premises of Silver’s Gym. Tommy Jetson suffered a sudden cardiac arrest (SCA) in the lobby of the gym while waiting for his wife. A Sylver’s employee requested to call Emergency Medical Service (EMS); in the meantime, the gym’s employee …show more content…
The formula for the expected value E(X) is as follows,
E(X) = ΣxP(x)
E(X) = 2500+ (.04)(1000000) = $42,500
Even though the cost of purchasing the defibrillator is only $2,500, the chance of the losing a lawsuit (4%) with up to $1,000,000 in cost means that owning a defibrillator actually costs $42,500. This means the amount to owning a defibrillator is much higher than just the cost, and must be considered under the number of circumstances if the having of this defibrillator is worth the cost. It is important to be aware that by having a AED, is not 100 percent sure that all incidents will be successfully done. The probability to die with a no AED is 80 percent. However the probability of improper use is 3 percent.
Under the scenario at which Silver’s Gym does not have a defibrillator, a total of 30 patients out of the 100 who suffer cardiac incidents will die; meaning 70 percent of the patients will live. With a defibrillator, there is an 80 percent chance that a patient who died without a defibrillator will live, but a 3 percent chance that improper use of the defibrillator will kill a patient who would have lived otherwise. The expected value, E(X), of number of lives saved by the defibrillator is as