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Assume that the system still costs $600 to fix every time it breaks down, and you are going to run the system 1000 times. You are considering improving your system. You have contacted a backup supplier of component 1. She tells you that the backup for component 1 will cost $50,000. What would the minimum reliability of the backup need to be to make the purchase worthwhile? (keep 4 decimals for intermediate calculations)

Assume that the system still costs $600 to fix every time it breaks down, and you are going to run the system 1000 times. You are considering improving your system. You have contacted a backup supplier of component 1. She tells you that the backup for component 1 will cost $50,000. What would the minimum reliability of the backup need to be to make the purchase worthwhile? (keep 4 decimals for intermediate calculations)

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Assume that the system still costs $600 to fix every time it breaks down, and you are going to run the system 1000 times. You are considering improving your system. You have contacted a backup supplier of component 1. She tells you that the backup for component 1 will cost $50,000. What would the minimum reliability of the backup need to be to make the purchase worthwhile? (keep 4 decimals for intermediate calculations)

0.855 0.645 0.800 0.999 c. Assume that the system still costs $600 to fix every time it breaks down, and you are going to run the system 1000 times. You are considering improving your system. You have contacted a backup supplier of component 1. She tells you that the backup for component 1 will cost $50,000. What would the minimum reliability of the backup need to be to make the purchase worthwhile? (keep 4 decimals for intermediate calculations)
Transcribed Image Text:0.855 0.645 0.800 0.999 c. Assume that the system still costs $600 to fix every time it breaks down, and you are going to run the system 1000 times. You are considering improving your system. You have contacted a backup supplier of component 1. She tells you that the backup for component 1 will cost $50,000. What would the minimum reliability of the backup need to be to make the purchase worthwhile? (keep 4 decimals for intermediate calculations)
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