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Calculate new risk exposure with using additional review.

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Consider the use of an additional review for Problem 2 that would cost $100 but eliminate such a fault 50 percent of the time. Calculate this new risk exposure with using the additional review. Is the additional review approach better?

What would change in Problem 3 if the additional review was only e?ective 10 percent of the time?

 

 

Reference no: EM13894634

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