Suppose That for a Particular Piece of Machinery, the Frequency

question 36

Multiple Choice

Suppose that for a particular piece of machinery, the frequency distribution of monthly breakdowns is as follows: $$\begin{array} { c c } \hline \text { Number of Breakdowns } & \text { Prob. } \\0 & 0.50 \\1 & 0.25 \\2 & 0.10 \\3 & 0.10 \\4 & 0.05\end{array}$$
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

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Definitions:

Communication Style

The manner in which individuals express themselves verbally and non-verbally when interacting with others.

Indirect Communication

A communication style where the message is not explicitly stated, often relying on context and nonverbal cues.

Perceptual Errors

Mistakes in judgment or interpretation made by individuals due to their subjective perceptions of people or situations.

Impression Management

The process of consciously making efforts to control and influence the perceptions of others about oneself.