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Consider an expensive part with a reliability of 96.6%. If the part fails, it will cost the firm $12,000.
a. What is the expected failure cost per part?
b. On each part, a rather unreliable backup can be installed that has a reliability of just 30%. What is the maximum amount that the firm should be willing to pay per part to install the backup? Support your answer.
c. Suppose that a second 30% reliable backup part could be installed, so that if both the original and the first backup part fail, then the second backup part will be used. If that second backup part costs $100, should it be installed? Support your answer.
In this discussion forum, you will define and discuss the steps to estimate costs depending on the defined activities and resources, and then define the budget and having the sponsor approve it.
Entitled Globalization of Soccer
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The U.S. Census Bureau publishes data on factory orders for all manufacturing, durable goods, and nondurable goods industries. Shown here are factory orders in the United States over a 13-year period ($ billion). Year Factory Orders ($ billion) 1 2,5..
Understanding yourself leads to more targeted self-development and an ability to focus on the work you're the most proficient at.
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