A Florida lottery machine and printer at Store #8302 operates 360 days a year. If the machine does not work and breaks down, it costs the Florida Lottery Commission $2,000 per day. If store employees are trained to perform local tests on the machine each day plus the costs of machine repairpersons, these preventive maintenance costs average $670 per day. If preventive maintenance is performed daily, the probability the equipment fails is zero. The probability of store lottery machine breakdown is as follows. What are the economics of the situation? What do you recommend?

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Number of lottery machine breakdowns per day Probability of a breakdown 0 1 0.333 0.333 2 0.333