Dusty Is Evaluating Two Bids to Supply Fence Hardware for the 5

question 35

Multiple Choice

Dusty is evaluating two bids to supply fence hardware for the 5 acres of pasture that need to be fenced. Breezy submits a bid of $40 per unit with a defect rate of 3%; Lady's bid is $50 per unit and their product manager estimates the defect rate to be around 0.5%. If a section of fence fails, it costs an average of $500 in losses and herding costs to round up all of the capybaras (giant rodents from South America - their leather makes fine gloves) . Dusty believes it will take 500 units to fence in this pasture configuration. The product manager's uncertainty has Dusty concerned; what defect rate for Lady would make Dusty indifferent between the two suppliers as far as total cost is concerned?

• A)1%
• B)0.5%
• C)0.33%
• D)0%

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Definitions:

Myelination

The process of forming a myelin sheath around the axons of neurons, which increases the speed at which impulses propagate.

Reticular Formation

A network of neurons located in the brainstem that is involved in controlling arousal and consciousness.

Electroencephalogram

A test that detects electrical activity in the brain using small, metal discs attached to the scalp, often used in the diagnosis and monitoring of neurological conditions.

Electrical Energy

Energy derived from electric potential or kinetic energy, which is commonly used for power generation and distribution in households and industries.