Question: A company owns two different computers, which are in separate buildings and operated entirely separately. Based on past history, Computer 1is expected to break down

A company owns two different computers, which are in separate buildings and operated entirely separately. Based on past history, Computer 1is expected to break down 5.0 times a year, with a variance of 6, and costing $200 per breakdown. Computer 2 is expected to break down3.6 times per year, with a variance of 7, and costing $165 per break-down. What is the company’s expected cost for computer breakdown sand the variance of the breakdown cost? What assumption must you make to find the variance? Is this a reasonable assumption?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Let X 1 random number ofbreakdowns for Computer 1 and ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Statistics Questions!

I'm in serious need of help in my accounting class (acc205) . I'm falling behind and I need help with this weeks assignment. for week three for the may-june month . can someone please help me ....

swot analysis Amgen Inc.: Planning the Unplannable Chance favors only the prepared mind. -Louis Pasteur Plans are nothing. Planning is everything. -Dwight D. Eisenhower Introduction With its...

hi. I'm stuck with a report whose Chic Paints Ltd. and I am finding difficulty to answer some questions such as the organisations accounting system requirements including hardware and software...

Income Statement of an interior design firm, Grand Designs, that makes money by selling hours (fees) and by selling furniture or other items (Sale of Goods). 1) Using the formula for Profit Margin,...

10Operations Budgeting Chapter 10 Outline Complete Review Questions 1-10 at the end of "HospitalityIndustry Managerial Accounting," Ch. 10 .Types of Budgets Budgeting Horizons Reasons for Budgeting...

Financial Statement analysis - Homework case number 4. Accounting for Software Revenue Recognition Is Computer Associates Being Too Aggressive? Annual Revenues at Computer Associates (CA) dropped...

Due Sunday, 11/20: Problems from Zimmerman text: 2-11, 2-44, Case 2-3, 7-7, and 7-20 Chapter Two The Nature of Costs Chapter Outline A. Opportunity Costs 1. Characteristics of Opportunity Costs 2....

There are two problems due this week (each worth 35 points) as follows. Case 5-1David L. Miller: Portrait of a White-Collar Criminal (page 144). In comprehensive paragraphs, answerrequirements 1?6....

Apple Inc: Performance in a Zero-Sum World Economy ON NOVEMBER1, 2010, JOHN TARPEY, SENIOR FINANCIAL ANALYST at a securities firm, was sitting at his conference table to begin the task of fully...

ABV Inc. has earning before interest and tax of $250 million, expected to grow 5% a year forever; and tax rate is 40%. Its cost of capital is 10%, its reinvestment rate is 33.33%, and it has 200...

Use the following data to develop a multiple regression model to predict y from x1 and x2. Discuss the output, including comments about the overall strength of the model, the significance of the...

A. Attach both completed Figures A1.1 (Income Statement) and A1.2 (Balance Sheet) that you used to respond to the task prompts with the Student ID entered into cell B8 and the Student Name entered...

Explain what is meant by the statements that the t test for a claim about is robust, but the 2 test for a claim about 2 is not robust.

Let the random variable X be equally likely to assume any of the values 1/8, 1/4, or 3/8. Determine the mean and variance of X.

Thickness measurements of a coating process are made to the nearest hundredth of a millimeter. The thickness measurements are uniformly distributed with values 0.15, 0.16, 0.17, 0.18, and 0.19....

Product codes of 2, 3, or 4 letters are equally likely. What is the mean and standard deviation of the number of letters in 100 codes?

Your answer is correct. Determine the missing amounts. (Hint: For example, to solve for (a), Assets - Liabilities = Owner's equity = $31,000.) Cullumber Company January 1, 2022 Assets $81,000 Blossom...

Saved Help Save & Exit Exercise 7-12 (Algo) Uncollectible accounts; allowance method estimating bad debts as percentage of net sales vs. direct write-off method [LO7-5, 7-6] Ervin Company uses the...

The graph below shows monthly data collected on facilities maintenance department costs and on the number of patient-days serviced over the past year. 50,000 45,000 Maintenance Department Costs...