Suppose That the Average Time Before Breakdown Is Normally Distributed

question 28

Multiple Choice

Suppose that the average time before breakdown is normally distributed with a mean of 2.5 weeks and a standard deviation of .4 weeks. If breakdowns cost an average of $1,200 and preventive maintenance costs $800, what is the optimal maintenance interval?

• A)Every .67 weeks
• B)Every .33 weeks
• C)Every 2.67 weeks
• D)Every 3.25 weeks
• E)Every 3.12 weeks

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