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 $2,000. 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 3 1 3 11 0
The expected number of breakdowns per year with station employees performing maintenance =_____breakdowns per year (round to two decimal places)
The expected cost of the current maintenance policy=____(round to two decimal places)
Should they outsource or not?