Suppose That for a Particular Piece of Machinery, the Frequency

Multiple Choice

Suppose that for a particular piece of machinery, the frequency distribution of monthly breakdowns is as follows:

The cost of a breakdown is $2,000, and the cost of a preventive maintenance program is $2,000 per month. If the preventive maintenance program is adopted, the probability of a machine breakdown is negligible. How much better off per month would the firm be if it adopted preventive maintenance?

A) $100 worse off
B) $200 worse off
C) $100 better off
D) $200 better off
E) $2,000 better off