You are asked to give a recommendation based on overall cost as to which machine, A or B, along with its repair contract, should be purchased. What would your recommendation be? Give statistical justification to support your recommendation.

MATLAB: An Introduction with Applications
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ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
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5. A department supervisor is considering purchasing one of two comparable photocopy machines, A or
B. Machine A costs $10,000 and Machine B costs $10,500.This department replaces photocopy ma- chines every
three years. The repair contract for Machine A costs $50 per month and covers an un- limited number of repairs.T
he repair contract for Machine B costs $200 per repair. Based on past performance, the distribution of the number
of repairs needed over any one-year period for Machine B is shown below.
Number of Repairs
3
Probability
0.50
0.25
0.15
0.10
You are asked to give a recommendation based on overall cost as to which machine, A or B, along with its repair
contract, should be purchased. What would your recommendation be? Give statistical justification to support your
recommendation.
A: 4 1,00 0
B: D, S00
Transcribed Image Text:5. A department supervisor is considering purchasing one of two comparable photocopy machines, A or B. Machine A costs $10,000 and Machine B costs $10,500.This department replaces photocopy ma- chines every three years. The repair contract for Machine A costs $50 per month and covers an un- limited number of repairs.T he repair contract for Machine B costs $200 per repair. Based on past performance, the distribution of the number of repairs needed over any one-year period for Machine B is shown below. Number of Repairs 3 Probability 0.50 0.25 0.15 0.10 You are asked to give a recommendation based on overall cost as to which machine, A or B, along with its repair contract, should be purchased. What would your recommendation be? Give statistical justification to support your recommendation. A: 4 1,00 0 B: D, S00
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