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Reliability & Maintenance Tbay University has set up printing stations on campus, which are currently maintained by their Tech Service Unit. The table below

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Reliability & Maintenance Tbay University has set up printing stations on campus, which are currently maintained by their Tech Service Unit. The table below recorded the breakdowns over past months under the current maintenance policy. Number of breakdowns 012345 Monthly frequency of breakdowns 4 8 5 210 Each breakdown would cost an average of $200 for repairs. The printer manufacturer has recently approached to the university for a $250 monthly service contract, in which they guarantee repairs on any breakdowns. 1.1 What is the expected number of breakdowns per month with the maintenance by Tech Service Unit? What is the monthly cost under the current maintenance policy? 1.2 Would you recommend the university to sign the service contract with the printer manufacturer? Why? 1.3 The university also plans to conduct a preventive maintenance schedule with $60 per month and to reduce the breakdowns to 0.8 per month, would you recommend the university to sign the service contract with the printer manufacturer? Why?

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