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

question 62

Essay

Dusty is evaluating three 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 2%; Lady's bid is $50 per unit with a defect rate of 0.5%; and Spike's bid is $30 per unit with a defect rate of 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 native to Brazil. Dusty believes it will take 1000 units to fence in this pasture configuration; what is the BEST choice for supplier?

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Definitions:

Critical-Thinking Skill

The ability to logically analyze information and arguments, identify biases or assumptions, and make reasoned conclusions.

Objectively Gathering

The process of collecting data or information without bias, ensuring accuracy and reliability in research or assessments.

Information

Data that have been processed, organized, or structured in a given context to be meaningful or useful to its receiver.

Reasoned Thought

The process of thinking about something in a logical, rational manner to form a conclusion or judgment.