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 $2,200. The current maintenance policy (withe station employees performing maintenance) has yielded the following history: The expected number of breakdowns per year with station employees performing maintenance = breakdowns per year (roundyour response to two decimal places).

Explanation / Answer

The expected number of breakdowns per year with station employees performing maintenance

Expected no of breakdowns = 0* 0.277778 + 1*0.166667 +2* 0.166667 + 3* 0.277778 + 4 *0.111111 + 5* 0 = 1.777= 1. 78

The expected number of breakdowns per year is 1.78 breakdown per year

No of breakdowns Years frequency probability 0 5 = 5/18 = 0.277778 1 3 = 3/18 = 0.166667 2 3 = 3/18 = 0.166667 3 5 = 5/18 = 0.277778 4 2 = 2/18 = 0.111111 5 0 = 0 Total 18 = 1

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