A System Consists of Two Components, Each of Which Must

question 80

Multiple Choice

A system consists of two components, each of which must activate if the system is to activate. One component has a reliability of 0.99. The other has a reliability of 0.95. The components are independent of one another with respect to reliability. What is the overall system reliability?

• A)0.99
• B)0.95
• C)0.94
• D)0.90
• E)Cannot be determined with this information.

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Definitions:

Residual Value

The estimated value of an asset at the end of its lease term or useful life.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in an even manner.

Fair Value

The amount one would get from selling an asset or the cost to transfer a liability in a smooth transaction among market participants on the date of valuation.

IFRS

A collection of accounting principles formulated by the International Accounting Standards Board (IASB), known as International Financial Reporting Standards, which instruct on how financial statements should be prepared worldwide.