Number of failures with its oxygen masks

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Reference no: EM132153060

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 1 2 3 4 5

Number of years in which breakdowns occurred 4 2 3 5 7 0

a) The expected number of breakdowns per year with station employees performing maintenance = (round your response to two decimal places).

b) The cost of the current maintenance policy equals Expected number of breakdowns times Breakdown cost = $ round your response to two decimal places

Reference no: EM132153060

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