A Product Has Three Components X, Y, and Z

question 94

Essay

A product has three components X, Y, and Z. X has reliability of 0.991; Y has reliability of 0.993. If Z has reliability of 0.991, what is the reliability of the entire product?
Can Z be redesigned to be reliable enough for the entire product to have reliability of 0.99?
Explain.

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Definitions:

Excise-Tax Revenues

Government income derived from taxes imposed on specific goods, services, or activities.

Tax Rate

The percentage of income or value of goods that is collected by the government as tax.

Elastic Demand

Product or resource demand whose price elasticity of demand is greater than 1, so that any given percentage change in price leads to a larger percentage change in quantity demanded. As a result, quantity demanded is relatively sensitive to (elastic with respect to) price.

Price Elasticity

A measure of how sensitively the quantity demanded of a good or service responds to a change in its price.