A System Is Composed of Three Components A, B, and C

question 110

Multiple Choice

A system is composed of three components A, B, and C. All three must function for the system to function. There are currently no backups in place. The system has a reliability of 0.966. If a backup is installed for component A, the new system reliability will be:

• A) unchanged.
• B) less than 0.966.
• C) greater than it would be if a backup were also installed for component B.
• D) greater than 0.966
• E) none of these

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Definitions:

Annuity Holders

Individuals or entities that have invested in an annuity contract, which typically provides fixed or variable payments at regular intervals.

Insurance Company

A financial institution that provides various forms of insurance policies to protect individuals or businesses against risks in exchange for premiums.

Modified Duration

A measure of the sensitivity of a bond’s price to changes in interest rates, indicating how much the price will change as interest rates move.

Semiannually

Occurring or payable twice a year.