Question

DuLarge Marine manufactures diesel engines for shrimp trawlers and other small commercial boats. One of their CNC machines has caused several problems. Over the past 30 weeks, the machine has broken down as indicated below. Each time the machine breaks down, the firm loses an average of $3,000 in time and repair expenses.


Number of breakdowns per week 0 1 2 3 4
Frequency (Number of weeks that breakdowns occurred) 8 3 5 9 5

What is the expected breakdown cost per week?

A) $1,000

B) $2,000

C) $6,000

D) $10,000

E) $60,000

Answer

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