Suppose That for a Particular Piece of Machinery, the Frequency

question 26

Multiple Choice

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

Understand the concepts and calculations related to coefficient of variation and correlation.

Interpret and analyze data summaries, including five number summaries and box plots.

Apply the concept of relative frequency in the context of data analysis.

Understand measures of variability, including range, interquartile range, and their importance.

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Definitions:

Relational

Pertaining to or concerning the way in which two or more concepts, objects, or people are connected.

Purpose Of Assessment

The rationale or objective behind evaluating or measuring a particular set of skills, knowledge, abilities or performance.

Identification

A psychological process whereby an individual associates themselves closely with another person, adopting their characteristics or viewpoints.

Interview

An interview is a formal conversation where questions are asked and answers are given, typically used for the purposes of assessment, research, or information gathering.