What is the most economical policy to attain target degree, Marketing Management

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What is the most economical policy to attain target degree

Problem

For small animal surgery services, a computerized heart-lung machine must have a reliability of 0.995. Two technologies are available for the heart-lung machine: one produces a 0.999 reliability for $50,000. Another produces a component with 0.90 reliability for $20,000. What is the most economical policy to attain the target degree of reliability: one high-reliability system or a parallel set of low-reliability systems? Why?

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Marketing Management: What is the most economical policy to attain target degree

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Marketing Management: What is the most economical policy to attain target degree

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