QUESTION 5 [20 Marks]
The Mayflower Manufacturing Company produces a product on a numberof machines. When
a machine breaks down, it must be repaired; and it takes eitherone, two or three days for the
repair to be completed. Every time a machine breaks down, the costto the company is an
estimated R2 000 per day in lost production until the machine isrepaired.
The company would like to know if it should implement a machinemaintenance program at a
cost of R20 000 per year that would reduce the frequency ofbreakdowns and thus the time for
repair. The maintenance program would result in the followingcontinuous probability function
for time between
OR
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OR
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