Question: option B is incorrect, which is the right answer? Benito is trying to decide whether to use one or two suppliers for a major component
option B is incorrect, which is the right answer? Benito is trying to decide whether to use one or two suppliers for a major component of his products. The suppliers are located in a coastal town that is prone to hurricanes. He estimates that the probability in any year of a "superevent" that might shut down all suppliers at the same time for at least two weeks is Such a total shutdown would cost the company approximately $ He estimates the "uniqueevent" risk for any of the suppliers to be The marginal cost of managing an additional supplier is $ per year. What is the expected moneytary value?
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