Suppose That the Average Time Before Breakdown Is Normally Distributed

question 28

Multiple Choice

Suppose that the average time before breakdown is normally distributed with a mean of 2.5 weeks and a standard deviation of .4 weeks. If breakdowns cost an average of $1,200 and preventive maintenance costs $800, what is the optimal maintenance interval?

• A)Every .67 weeks
• B)Every .33 weeks
• C)Every 2.67 weeks
• D)Every 3.25 weeks
• E)Every 3.12 weeks

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Definitions:

Organizational Buy Classes

Categories that differentiate the purchasing habits and procedures of organizations, often influenced by the nature and complexity of transactions.

Marketing Department

A division within a company responsible for developing strategies and tactics to promote its products or services and engage with its target audience.

Embroidered

Refers to a cloth that has been decorated with needle and thread or yarn, often featuring intricate designs or patterns.

Reverse Auction

In an e-marketplace, an online auction in which a buyer communicates a need for a product or service and would-be suppliers are invited to bid in competition with each other.