Suppose That for a Particular Piece of Machinery, the Frequency

question 88

Multiple Choice

Suppose that for a particular piece of machinery, the frequency distribution of monthly breakdowns is as follows:

The cost of a breakdown is $2,000, and the cost of a preventive maintenance program is $2,000 per month. If the preventive maintenance program is adopted, the probability of a machine breakdown is negligible. How much better off per month would the firm be if it adopted preventive maintenance?

• A)$100 worse off
• B)$200 worse off
• C)$100 better off
• D)$200 better off
• E)$2,000 better off

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Definitions:

Turquoise

A blue-to-green mineral that's often used as a gemstone in jewelry and decorative items.

Gallons

A unit of volume used in the United States customary and British imperial systems, used mainly for measuring liquids.

Luncheon

A formal or informal meal taken in the middle of the day, typically involving a variety of foods.

Chef

A professional cook, often the head of a kitchen in a restaurant or hotel.