Consider a Device That Requires Two Batteries to Function

question 4

Essay

Consider a device that requires two batteries to function.If either of these batteries dies,the device will not work.Currently there are two brand new batteries in the device,and there are three extra brand-new batteries.Each battery,once it is placed in the device,lasts a random amount of time that is triangularly distributed with parameters 15,18,and 25 (all expressed in hours).When any of the batteries in the device dies,it is immediately replaced by an extra (if an extra is still available).Use @RISK to simulate the time the device can last with the batteries currently available.

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Definitions:

Non-interest-bearing Notes

Debt instruments that do not accrue interest over time, thus repaid at their face value.

Incremental Borrowing Rate

The interest rate a lessee would have to pay to borrow over a similar term the funds necessary to purchase or lease an asset.

Non-interest-bearing Note

A promissory note in which no interest is earned or paid over the life of the note, with the borrower repaying only the face value of the note.