Question: Great Southern Consultants Group's computer system has been down several times over the past few months, as shown below. Number of breakdowns 0 1 2

Great Southern Consultants Group's computer system has been down several times over the past few months, as shown below.

Number of breakdowns

0

1

2

3

4

Monthly frequency

9

2

4

4

1

Each time the system is down, the firm loses an average of $400 in time and service expenses. They are considering signing a contract for preventive maintenance. With preventive maintenance, the system would be down on average only 0.5 per month. The monthly cost of preventive maintenance would be $200 a month. Which is cheaper, breakdown or preventive maintenance?

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