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

Analyze the relationship between ideology, social class, and social inequality.

Examine the role of systemic discrimination and dominant ideologies in perpetuating social inequalities.

Understand the concept of meritocracy and its implications for social stratification.

Identify the mechanisms through which social class is constructed and maintained.

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Definitions:

Bonds Payable

A financial liability representing money a company owes to bondholders, to be repaid at a specified future date.

Interest Payable

The amount of interest expense that has been incurred by a company but has not yet been paid to the creditor; it is a liability on the balance sheet.

Current Liability

Obligations that a company needs to settle within one fiscal year or its current operating cycle, whichever is longer, often including accounts payable, short-term loans, and accrued expenses.

Accounts Payable

Amounts a company owes to creditors for items or services purchased on credit.