The Average Time Before Breakdown of a Machine Is Normally

question 11

Multiple Choice

The average time before breakdown of a machine is normally distributed and has a mean of nine weeks and a standard deviation of 1.5 weeks. If breakdown cost averages $1,500 and preventive maintenance costs $500, what is the optimal preventive maintenance interval?

• A)3.8 weeks
• B)8.4 weeks
• C)9.6 weeks
• D)6.9 weeks
• E)7.2 weeks

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Definitions:

Principles

Fundamental truths or propositions that serve as the foundation for a system of belief, behavior, or reasoning.

Goal-Sharing

A strategy where organizational objectives are communicated and shared among team members to ensure alignment and foster cooperation.

Gain-Sharing

A performance-based compensation strategy where employees receive benefits from the cost-saving measures they contribute to.

Draw System

A compensation method where payments made to an employee in advance are later subtracted from their commissions to ensure they receive a consistent income.