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How would you go about estimating the theoretical value of "fewer outages"?

How would you go about estimating the theoretical value of "fewer outages"?

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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A utility company has the added challenge of estimating the impact of an outage on its customers.

In other words, a good-quality machine will theoretically lead to fewer (or shorter) outages. That is a real benefit to the company as customers without service can lead to a public relations nightmare.

That said, there is real value to a reduction in outages and it should be considered as part of the spending analysis.

 

Everyone,

How would you go about estimating the theoretical value of "fewer outages"? 

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