Safeway Rentals has a fleet of 30 rental cars. It is in the process of reviewing its preventive maintenance program. The cost of performing preventive maintenance is $25 per car. The probability distribution for breakdown after a preventive maintenance is given in the following table.

The average cost of repair in case of a breakdown is $250. Analyze the data and determine whether it is economical to continue the preventive maintenance program.

If so, what should be the frequency of preventive maintenance?

Transcribed Image Text:

MONTH P MONTH P 1234 0.02 7 0.15 0.04 8 0.20 0.05 9 0.15 0.10 10 0.05 5 0.10 11 0.03 6 0.10 12 0.01