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The frequency of breakdown of a machine that issues lottery tickets is given in the following table. Repairs cost an average of $ 2 2

The frequency of breakdown of a machine that issues lottery tickets is given in the following table. Repairs cost an average of $220. A service firm is willing to provide preventive maintenance under either of two options: #1 is $490 and covers all necessary repairs, and #2 is $330 and covers any repairs after the first one. (Do not round intermediate calculations. Round your final answer to the nearest whole number.)
Number of breakdowns/month 01234
Frequency of occurrence .05.20.35.20.20
Click here for the Excel Data File
Which option would have the lowest expected cost: pay for all repairs, service option #1, or service option #2?
multiple choice
Service option #1
Pay for all repairs
Service option #2

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