​Give Three Benefits of Model Development and an Example of Each

question 38

Essay

​Give three benefits of model development and an example of each.

Understand the relationship between component reliability and overall product reliability.

Apply reliability concepts to series and parallel systems.

Evaluate the cost-effectiveness of preventive maintenance versus breakdown repair.

Understand the concept of yield to maturity (YTM) and how it is calculated for bonds.

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Definitions:

Marginal Utility

The surplus enjoyment or utility obtained from the consumption of one extra unit of a good or service.

Budget Line

A line that shows the different combinations of two products a consumer can purchase with a specific money income, given the products’ prices.

Marginal Utility

The additional satisfaction or utility a consumer gets from consuming one more unit of a good or service.

Total Utility

The total satisfaction received from consuming a particular quantity of a good or service.