In Conducting a Failure Modes and Effects Analysis,the Following Data

question 9

Multiple Choice

In conducting a failure modes and effects analysis,the following data were developed for three modes Mode 1: Severity = 5,Occurrence = 2,and Undetectability = 7
Mode 2: Severity = 3,Occurrence = 6,and Undetectability = 5
Mode 3: Severity = 7,Occurrence = 2,and Undetectability = 4
Which has the highest risk?

• A)Mode 1
• B)Mode 2
• C)Mode 3
• D)Mode 1 and Mode 2 are equal in having highest risk

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Definitions:

Required Rate of Return

The minimum yearly percentage profit necessary for persuading individuals or corporations to invest in a particular security or initiative.

APR

The Annual Percentage Rate, a measure of the total cost of credit to the borrower on an annual basis, including interest and transaction fees.

Monthly Payments

Regular payments made over a period of time, typically monthly, for loans, mortgages, or other financial obligations.

Savings Account

An account for deposits located at a bank or another financial institution, which ensures the safety of the principal amount and offers a small interest rate.