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A Component Must Have Reliability of

question 33

Essay

A component must have reliability of .9925. Two technologies are available for this component: one produces a component with .999 reliability at a cost of $2000. Another produces a component with .73 reliability at a cost of $450. Which is cheaper: one high quality component or a parallel set of inferior components?


Definitions:

Insurance Agreement

A formal contract where one party agrees to indemnify another against loss, damage, or liability in return for payment of a premium.

Demonstrated Requirements

Clearly defined and verified needs or conditions that must be met or complied with.

Limitation Clauses

Provisions in a contract or law that restrict the time period within which a legal action can be brought or certain rights can be enforced.

Insurance Contracts

Agreements between an insurance provider and an individual or entity, outlining the terms for coverage against specified risks in exchange for premiums.

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