Question: a. what is the probability that both supplies will be disrupted using option 1? b. what is the probability that both supplies will be disrupted

a. what is the probability that both supplies will be disrupted using option 1?

b. what is the probability that both supplies will be disrupted using option 2? a. what is the probability that both supplies will be disrupted

Risk manager Camila De Leon of Johnson Chemicals is considering two options for the firm's supplier portfolio. Option 1 uses two local suppliers. Each has a "unique-event" risk of 5.8%, 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 14%, and the probability of a "super-event" that would disable both at the same time is estimated to be 0.24%

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