Which One of the Following Is not Necessary to Identify

question 122

Multiple Choice

Which one of the following is not necessary to identify the optimal maintenance policy?

• A) historical data on maintenance costs
• B) cost of performing the analysis
• C) breakdown probabilities
• D) breakdown occurrences
• E) repair times

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Definitions:

Simple Interest

A method of calculating interest where the calculation is based only on the original amount of money invested or borrowed, excluding the effect of compounding.

Profit

The financial benefit that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Personal Line

A type of credit product that allows individuals to borrow up to a pre-approved limit on an as-needed basis.

Prime Rate

The interest rate that commercial banks charge their most creditworthy customers, often used as a reference for other rates.