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Mathematics, 16.09.2021 08:00 pearlielb
The probability that equipment used in a hospital lab will need recalibration is given in the following table. A service firm is willing to perform maintenance and do any necessary calibrations for a fee of $700 per month. Recalibration costs $450 per time. (Round the answer of "Expected cost of recalibration" to nearest whole number.)
Number of Recalibrations01234
Probability of Occurrence.10.20.35.15.20
What is the Expected Cost of recalibration?
Service Contract Cost?
Which approach would be most cost-effective, recalibration as needed or the service contract?
multiple choice
a. Service contract
b. Recalibration
c. Both methods are the same
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