Question: A Florida lottery machine and printer at Store # 8 3 0 2 operates 3 6 0 days a year. If the machine does not

A Florida lottery machine and printer at Store #8302 operates 360 days a year. If the machine does not work and breaks down, it costs the Florida Lottery Commission $2,160 per day. If store employees are trained to perform local tests on the machine each day plus the costs of machine repairpersons, these preventive maintenance costs average $650 per day. If preventive maintenance is performed daily, the probability the equipment fails is zero. The probability of store lottery machine breakdown is as follows.
Number of Lottery
Machine Breakdowns per Day 012
Probability of a breakdown 1/31/31/3
What are the economics of the situation? Do not round intermediate calculations. Round your answers to the nearest dollar.
The expected cost of a breakdown per day is $
.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
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 General Management Questions!