Consider a Device That Requires Two Batteries to Function

question 4

Essay

Consider a device that requires two batteries to function.If either of these batteries dies,the device will not work.Currently there are two brand new batteries in the device,and there are three extra brand-new batteries.Each battery,once it is placed in the device,lasts a random amount of time that is triangularly distributed with parameters 15,18,and 25 (all expressed in hours).When any of the batteries in the device dies,it is immediately replaced by an extra (if an extra is still available).Use @RISK to simulate the time the device can last with the batteries currently available.

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Definitions:

Maturity

The specified time at which the principal amount of a bond, loan, or other financial instrument is due to be paid in full.

Coupon Bond

A type of bond that pays the holder a fixed interest rate (coupon) over the bond's lifespan and repays the principal at maturity.

Yield To Maturity

The expected total yield from a bond assuming it is retained until the end of its term, accounting for all interest earnings and the return of the initial investment.

Market Yield

The current annual income return of an investment divided by the present market price.