Business, 23.03.2021 06:00, Hooorax01

A particular circuit works only if all 10 of its component devices work. Each circuitis tested before leaving the factory. Each working circuit can be sold forkdollars, but eachnonworking circuit is worthless and must be thrown away. Each circuit can be built with eitherordinary components or ultra-reliable component devices. An ordinary device has a failureprobability of q = 0.1 and costs $1. An ultra-reliable device has a failure probability ofq/2 butcosts $3. Assuming device failures are independent, should you build your circuit with ordinarydevices or ultra- reliable devices in order to maximize your expected profitE[R]? Keep in mindthat your answer will depend on k.

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A particular circuit works only if all 10 of its component devices work. Each circuitis tested befor...