Suppose That for a Particular Piece of Machinery, the Frequency

question 11

Multiple Choice

Suppose that for a particular piece of machinery, the frequency distribution of monthly breakdowns is as follows: $$\begin{array} { c c } \hline \text { Number of Breakdowns } & \text { Prob. } \\0 & 0.40 \\1 & 0.30 \\2 & 0.15 \\3 & 0.10 \\4 & 0.05\end{array}$$
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

Acknowledge the impact of friend and self-ratings on longevity predictions.

Understand the relationship between personality traits and the propensity to experience stress and engage in health-promoting behaviors.

Recognize the limitations and challenges in researching health outcomes related to personality.

Understand the relationship between personality and health, including how personality traits can influence health outcomes.

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Definitions:

Insurance Claim

A formal request to an insurance company asking for payment based on the terms of an insurance policy.

Legislation

Laws and statutory regulations enacted by a government's legislative body.

Field of Negligence

An area of tort law that deals with breaches of duty causing harm or injury to others.

Occupiers' Liability Act

Legislation defining the duty of care owed by those who control land or buildings towards those who enter the premises.