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The probability that equipment used in a hospital lab will need recalibration is given in the following table. A service firm is willing to perform

The probability that equipment used in a hospital lab will need recalibration is given in the following table. A service firm is willing to perform maintenance and do any necessary calibrations for a fee of $625 per month. Recalibration costs $325 per time. (Round the answer of "Expected cost of recalibration" to nearest whole number.)
Number of Recalibrations 01234
Probability of Occurrence .10.30.35.20.05
Click here for the Excel Data File
Which approach would be most cost-effective, recalibration as needed or the service contract?
multiple choice
Recalibration
Service contract
Both methods are the same

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