Question: A factory manager is considering whether to replace a temperamental machine. A review of past records indicates the following probability distribution for the number of

A factory manager is considering whether to replace a temperamental machine. A review of past records indicates the following probability distribution for the number of break- downs of this machine in a week. NUMBER OF BREAKDOWNS PROBABILITY 1 2 3 .10 .26 .42 .16 .06

(a) Find the mean and standard deviation of the number of weekly breakdowns.

(b) It is estimated that each breakdown costs the company $1,500 in lost output. Find the mean and standard deviation of the weekly cost to the company from breakdown of this machine.

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