Walsh Construction Is Considering Two Options for Its Supplier Portfolio

question 219

Essay

Walsh Construction is considering two options for its supplier portfolio. Option 1 uses two local suppliers. Each has a "unique-event" risk of 8%, and the probability of a "super-event" that would disable both at the same time is estimated to be 2.5%. Option 2 uses two suppliers located in different countries. Each has a "unique-event" risk of 18%, and the probability of a "super-event" that would disable both at the same time is estimated to be 1.2%.
(a) What is the probability that both suppliers will be disrupted using option 1?
(b) What is the probability that both suppliers will be disrupted using option 2?
(c) Which option would provide the lowest risk of a total shutdown?

Understand the sociological perspectives on the role and impact of education.

Comprehend the effects of social class on educational opportunities and outcomes.

Recognize the concept and implications of cultural capital in education.

Identify the structural inequalities within the education system.

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Definitions:

Significant Result

In statistical analysis, a result that is unlikely to have occurred by chance alone, according to a predefined threshold of probability, indicating a meaningful difference or relationship.

Repetitions

The act or process of doing or saying something again, often to learn or reinforce.

Chance

A concept referring to the occurrence of events in the absence of any obvious intention or cause.

Organized System

A structured set of components or entities that are interrelated and work together towards a particular goal or set of objectives.