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The fire department has a number of failures with its oxygen masks and is evalua

ID: 336994 • Letter: T

Question

The fire department has a number of failures with its oxygen masks and is evaluating the possibility of outsourcing preventive maintenance to the manufacturer. Because of the risk associated with a? failure, the cost of each failure is estimated at $2,200.

The current maintenance policy? (with station employees performing?maintenance) has yielded the following? history:

Number of breakdowns

0

1

2

3

4

5

Number of years in which breakdowns occurred

4

3

1

5

6

2

?a) The expected number of breakdowns per year with station employees performing maintenance? = nothing breakdowns per year ?(round your response to two decimal? places).

b-The cost of the current maintenance policyequals=Expected number of breakdownstimes×Breakdowncost? =

Number of breakdowns

0

1

2

3

4

5

Number of years in which breakdowns occurred

4

3

1

5

6

2

Explanation / Answer

The fire department has a number of failures with its oxygen masks and is evaluating the possibility of outsourcing preventive maintenance to the manufacturer. Because of the risk associated with a? failure, the cost of each failure is estimated at $2,200.

The current maintenance policy? (with station employees performing?maintenance) has yielded the following? history:

Number of breakdowns

0

1

2

3

4

5

Number of years in which breakdowns occurred

4

3

1

5

6

2

?a) The expected number of breakdowns per year with station employees performing maintenance? = nothing breakdowns per year ?(round your response to two decimal? places).

b-The cost of the current maintenance policyequals=Expected number of breakdownstimes×Breakdowncost? =

Number of breakdowns

0

1

2

3

4

5

Number of years in which breakdowns occurred

4

3

1

5

6

2

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