The breakdown probability of an equipment is given below: Month Probability 1 0.05 2 0.15 3 0.30

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The breakdown probability of an equipment is given below:

Month Probability 1 0.05 2 0.15 3 0.30 4 0.30 5 0.20 There are 50 such equipments in the plant. The cost of individual preventive replacement is Rs. 15 per equipment and the cost of individual breakdown replacement is Rs. 30 per equipment. Which should be the preferred policy?

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