The probability that equipment used in a hospital lab will need recalibration is given in the following table. A service firm is willing to provide maintenance and provide any necessary calibrations for a fee of $ 650 per month. Recalibration costs $ 500 per time. Which approach would be most cost-effective, recalibration as needed or the service contract?

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Number of Recalibrations0 Probability of Occurrence 15 25 3 0 20.10