Question: THIS IS THE ENTIRE QUESTION - PROBILITY IS NOT GIVEN. (response to comment) Tiger Island Fabricators, which builds offshore oil platforms, has been experiencing problems

THIS IS THE ENTIRE QUESTION - PROBILITY IS NOT GIVEN. (response to comment)

Tiger Island Fabricators, which builds offshore oil platforms, has been experiencing problems with its profiling machine, a computer-driven device that cuts the ends of pipe so that it can be welded to another pipe, as shown in the data below.

Number of breakdowns

0

1

2

3

4

5

Breakdown frequency (in months)

2

2

2

6

7

1

Each time a machine breaks down, the company loses about $300. If the company implements preventive maintenance, it will be able to reduce the number of breakdowns to one breakdown per month. Preventive maintenance costs would be $560 a month.

What is the average monthly cost caused by breakdowns based on the data given in the table?

What is the total monthly cost if the company implements preventive maintenance?

Is it cost effective for the company to implement preventive maintenance? Why?

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