Given the following data, find the expected breakdown cost. The cost per breakdown is $100.
$520232\begin{array} { | l | c | c | c | c | } \hline \text { Number of breakdowns } & 0 & 1 & 2 & 3 \\\hline \text { Monthly frequency } & 5 & 20 & 23 & 2 \\\hline\end{array}$

Question

Given the following data, find the expected breakdown cost. The cost per breakdown is $100.  Number of breakdowns  0 1 2 3  Monthly frequency  5 20 23 2 \begin{array} { | l | c | c | c | c | } \hline 	ext { Number of breakdowns }  &  0  &  1  &  2  &  3 \\hline 	ext { Monthly frequency }  &  5  &  20  &  23  &  2 \\hline\end{array}  Number of breakdowns   Monthly frequency  ​ 0 5 ​ 1 20 ​ 2 23 ​ 3 2 ​ ​

Kaur Banwait Saini · Accepted Answer

Final Answer :   Number of breakdowns  0 1 2 3  Total   Monthly probability  . 10 . 40 . 46 . 04 1.000 \begin{array} { | l | c | c | c | c | l | } \hline 	ext { Number of breakdowns }  &  0  &  1  &  2  &  3  &  	ext { Total } \\hline 	ext { Monthly probability }  &  .10  &  .40  &  .46  &  .04  &  1.000 \\hline\end{array}  Number of breakdowns   Monthly probability  ​ 0 .10 ​ 1 .40 ​ 2 .46 ​ 3 .04 ​  Total  1.000 ​ ​   Expected number of breakdowns per month = (0 ∗ .10) + (1 ∗ .40) + (2 ∗ .46) +(3 ∗ .04) = 1.44; Expected cost of breakdowns = 1.44 ∗ $100 = $144

Given the following data, find the expected breakdown cost. The cost per breakdown is $100.
$520232\begin{array} { | l | c | c | c | c | } \hline \text { Number of breakdowns } & 0 & 1 & 2 & 3 \\\hline \text { Monthly frequency } & 5 & 20 & 23 & 2 \\\hline\end{array}$

Definitions

Learning Objectives

Learning Objectives

Related questions