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The probability that equipment used in a hospital lab will need recalibration is given in the following table. A service rm is willing to perform
The probability that equipment used in a hospital lab will need recalibration is given in the following table. A service rm is willing to perform maintenance and do any necessary calibrations for a fee of $600 per month. Recalibration costs $475 per time. (Round the answer of "Expected cost of recalibration" to nearest whole number.) Number of Recalibrations 0 1 2 3 4 Probability of Occurrence . 15 . 20 . 30 . 25 . 10 Which approach would be most cost-effective, recalibration as needed or the service contract? Service contract 0 Recalibration 0 Both methods are the same
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