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

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 $2,000. The current maintenance policy (with station employees performing maintenance) has yielded the following history: Number of breakdowns 0 1234 5 5 3 24 3 1 a) The expected number of breakdowns per year with station employees performing maintenance = places). breakdowns per year round your response to two decimal

Explanation / Answer

Expected no. of breakdowns per year = 2.00

# Breakdowns 0 1 2 3 4 5 Total # Years 5 3 2 4 3 1 18 Total breakdowns 0 3 4 12 12 5 36 breakdowns per year = 36/18 = 2

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