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Average time between breakdowns

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Probability of repair time:

On the basis of information available in this case problem, the repair time is determined through probability of occurring in one year. That is there is 20% chance to repair in 1 day, 45% chance to repair in 2 day, 25% chance to repair in 3 days, and 10% chance to repair in 4 days.

Random numbers:

There are 365 random numbers are selected through excel program sheet in order to determine average time between breakdowns, average repair time and average annual loss of revenue.

Reference no: EM13925754

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