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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 maintenance and do any necessary calibrations for a fee of $650 per month. Recalibration costs $500 per time. Which approach would be most cost-effective, recalibration as needed or the service contract?

\begin{tabular}{|l|r|r|r|r|r|} \hline Number of Recalibrations & 0 & 1 & 2 & 3 & 4 \\ \hline Probability of Occurrence & .15 & .25 & .30 & .20 & .10 \\ \hline \end{tabular}