A Relay Microchip in a Telecommunications Satellite Has a Life

question 1

Multiple Choice

A relay microchip in a telecommunications satellite has a life expectancy that follows a normal distribution with a mean of 70 months and a standard deviation of 3.1 month. When this computer-relay microchip malfunctions, the entire satellite is useless. A large London insurance company is going to insure the satellite for 50 million dollars. Assume that the only part of the satellite in question is the microchip. All other components will work indefinitely. If the satellite is insured for 71 months, what is the expected loss to the insurance company? Round to the nearest ten-thousand dollars.

• A)$21.80 million
• B)$31.32 million
• C)$18.68 million
• D)$6.32 million
• E)$28.20 million

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Definitions:

Innovation Process

A systematic approach to developing and implementing novel ideas or products, typically involving stages of ideation, development, testing, and commercialization.

Imagining

The process of forming new ideas, images or concepts not present to the senses, often used as a tool for creativity and problem solving.

Innovation Process

Refers to the systematic method of creating and implementing new ideas, products, or processes within an organization to enhance its value or efficiency.

Scaling

The process of adjusting the size, capacity, or scope of an operation or system to meet changing objectives or demands.