[Solved] The frequency of breakdown of a machine that issues lottery tickets is given in the following table. - Repairs cost an average of $240. A service
Question: The frequency of breakdown of a machine that issues lottery tickets is given in the following table. - Repairs cost an average of $240. A service firm is willing to provide preventive maintenance under either of two options. #1 is $500 and covers all necessary repairs, and #2 is $350 and covers any repairs after the first one. Which option would have the lowest expected cost, pay for all repairs, service option #1, or service option #2?
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