Question
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
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 $1,930 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 $850 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.
Number of Lottery | |||
Machine Breakdowns per Day | 0 | 1 | 2 |
Probability of a breakdown | 1/3 | 1/3 | 1/3 |
What are the economics of the situation? Do not round intermediate calculations. Round your answers to the nearest dollar.
The expected cost of a breakdown per day is $ ??
The Florida Lottery Commission saves ?????? per year performing preventive maintenance daily.
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