Question: 4 . ( 1 2 pts ) A computer system consists of three critical components: a mother board, a power supply, and a hard disk.
pts A computer system consists of three critical components: a mother board, a power supply, and a hard disk. The failure time of each component follows an exponential distribution with MTBF as follows:
Mother board hrs
Power supply hrs
Hard drive hrs
The US Government is purchasing such computers from Dell. Each computer will be used hours a year on average, and failures occurring during the first year of operations are automatically covered by Dell free of charge.
Dell is considering offering only one of the following two extended warranty plans to the US Government.
Plan charges $ per machine for a year extended warranty, which will cover the second and third year failures.
Plan charges $ per machine for a year extended warranty, which will cover the second, third, and fourth year failures.
It will cost Dell on average $ per failure to repair.
Strictly from a profit perspective, which extended warranty plan or above should Dell offer to the US Government? Justify your answer.
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