The fire department has a number of failures with its oxygen masks and is evaluating the possibility of outsourcing preventive maintenance to the manufacturer. Because of the risk associated with a failure, the cost of each failure is estimated at $2,400. The current maintenance policy (with station employees performing maintenance) has yielded the following history:
Number of breakdowns
0
1
2
3
4
5
Number of years in which breakdowns occurred
3
2
1
5
9
1
a) The expected number of breakdowns per year with station employees performing maintenance =____ breakdowns per year (round your response to two decimal places).
b) The cost of the current maintenance policy = $____ (round your response to the
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