a) The probability that both suppliers will be disrupted using option 1 is _____ (round your response to five decimal places).

b) The probability that both suppliers will be disrupted using option 2 is _____

c) Which option would provide the lowest risk of total shutdown _____

Johnson Chemicals is considering two options for its supplier portfolio. Option 1 uses two local suppliers. Each has a "unique-event" risk of 5.4%, and the probability of a "super-event" that would disable both at the same time is estimated to be 1.6%. Option 2 uses two suppliers located in different countries. Each has a "unique-event" risk of 11%, and the probability of a "super-event" that would disable both at the same time is estimated to be 0.27%