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?
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
