The Average Time Before Breakdown of a Machine Is Normally

question 25

Multiple Choice

The average time before breakdown of a machine is normally distributed and has a mean of 18 weeks and a standard deviation of three weeks. If breakdown cost averages $2,000 and preventive maintenance costs $1,400, what is the optimal preventive maintenance interval?

• A)16.4 weeks
• B)14.6 weeks
• C)16.9 weeks
• D)19.6 weeks
• E)21.3 weeks

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Definitions:

Quantity Supplied

The supply of a good or service that businesses intend to sell, given a certain price point.

Quantity Supplied

The measure of goods or services that vendors are eager and able to part with at a set price.

Supply Curve

A visual diagram that illustrates how the price of a product correlates with the amount of the product that sellers are prepared to offer.