Question: compute the expected number of breakdowns Question 1 (Maintenance) Over a course of 30 months, Neymar Transport has had breakdown profile rate of trucks shown

compute the expected number of breakdowns

compute the expected number of breakdowns Question 1 (Maintenance) Over a course

Question 1 (Maintenance) Over a course of 30 months, Neymar Transport has had breakdown profile rate of trucks shown in table 1-1. Table 1-1 Number of Number of Months That Breakdowns Breakdowns Occurred Mrs. Neymar, the Managing Director is contemplating on whether she should hire for maintenance service on the trucks. The average cost of breakdown per truck is ZMW 3000. The Workshop Manager at Toyota Zambia Service Centre offers a preventive maintenance service contract of ZMW 1500 per month per truck. You are required to: i. Compute the expected number of breakdowns. ii. Compute the expected breakdown cost per month with no preventive maintenance. iii. Compute the cost of preventive maintenance, if she hires Toyota Service Centre

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