Problem 14S-1 The probability that equipment used in a hospital lab will need recalibration is given...
Problem 14S-1
The probability that equipment used in a hospital lab will need
recalibration is given in the following table. A service firm is
willing to provide maintenance and provide any necessary
calibrations for a fee of $550 per month. Recalibration costs $300
per time. Which approach would be most cost-effective,
recalibration as needed or the service contract? (Round the
answer of "Expected cost of recalibration" to nearest whole number.
Omit the "$" sign in your response.)
| Number of recalibrations | 0 | 1 | 2 | 3 | 4 |
| Probability of occurrence | .20 | .30 | .20 | .20 | .10 |
| Expected cost of recalibration | $ |
Choose one of the below:
-
Recalibration
-
Service contract
-
Either approach costs the same
Homework Answers
Add Answer to:
Problem 14S-1
The probability that equipment used in a hospital lab will need
recalibration is given...
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