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Benito is trying to decide whether to use one or two suppliers for a major component of his products. The suppliers are located in a coastal town that is prone to hurricanes. He estimates that the probability in any year of a "super-event" that might shut down all suppliers at the same time for at least two weeks is 5%. Such a total shutdown would cost the company approximately $100,000. He estimates the "unique-event" risk for any of the suppliers to be 8%. The marginal cost of managing an additional supplier is $6,000 per year. What is the probability (P) that both suppliers will be disrupted? O P- 5%

Benito is trying to decide whether to use one or two suppliers for a major component of his products. The suppliers are located in a coastal town that is prone to hurricanes. He estimates that the probability in any year of a "super-event" that might shut down all suppliers at the same time for at least two weeks is 5%. Such a total shutdown would cost the company approximately $100,000. He estimates the "unique-event" risk for any of the suppliers to be 8%. The marginal cost of managing an additional supplier is $6,000 per year. What is the probability (P) that both suppliers will be disrupted? O P- 5%

Holt Mcdougal Larson Pre-algebra: Student Edition 2012
Holt Mcdougal Larson Pre-algebra: Student Edition 2012
1st Edition
ISBN:9780547587776
Author:HOLT MCDOUGAL
Publisher:HOLT MCDOUGAL
Chapter11: Data Analysis And Probability
Section11.8: Probabilities Of Disjoint And Overlapping Events
Problem 2C
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Benito is trying to decide whether to use one or two suppliers for a major component of his products. The suppliers are located in a coastal town that is prone to hurricanes. He estimates that the probability in any year of a "super-event" that might shut down all suppliers at the same time for at least two weeks is 5%. Such a total shutdown would cost the company approximately $100,000. He estimates the "unique-event" risk for any of the suppliers to be 8%. The marginal cost of managing an additional supplier is $6,000 per year. What is the probability (P) that both suppliers will be disrupted? O P- 5% 5.5%<P<=5.8% O 5%<P<=5.5% O 5.8% <P
Transcribed Image Text:Benito is trying to decide whether to use one or two suppliers for a major component of his products. The suppliers are located in a coastal town that is prone to hurricanes. He estimates that the probability in any year of a "super-event" that might shut down all suppliers at the same time for at least two weeks is 5%. Such a total shutdown would cost the company approximately $100,000. He estimates the "unique-event" risk for any of the suppliers to be 8%. The marginal cost of managing an additional supplier is $6,000 per year. What is the probability (P) that both suppliers will be disrupted? O P- 5% 5.5%<P<=5.8% O 5%<P<=5.5% O 5.8% <P
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