What is the probability of the equipment not failing

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Reference no: EM133560996

Question: The facilities management department of company Alpha is analyzing if they should buy a certain equipment. According to the manufacturer of the equipment, the expected life of this product is 8 years. Find the reliability for this equipment: a. (10 points) After the initial 8 years of service b. (10 points) Before 8 years of service c. (10 points) Not before 12 years of service 2. As a facility manager is analyzing the purchase of an equipment, they noticed that the probability of failure of the equipment is of 30%. However, if the product fails, the cost involved would be $45,000. However, due to the high probability of failure, the manufacturer offers two backup options. Backup 1 - Buy a backup component for $6,000. This component has a probability of failure of 40%. Backup 2 - Buy a backup component for $12,000. This component has a probability of failure of 10%. a. (10 points) If you buy the backup 1 component what is the probability of the equipment not failing? b. (10 points) If you buy the backup 2 component what is the probability of the equipment not failing?

Reference no: EM133560996

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