Question: Problem 4: Reliability (25 points) Suppose that you have the following system with Stations 1, 2, and 3, and with the following reliabilities, where all

Problem 4: Reliability (25 points) Suppose that
Problem 4: Reliability (25 points) Suppose that you have the following system with Stations 1, 2, and 3, and with the following reliabilities, where all three stations have to work: R1 - 90 R2 = .80 R3 = 85 Suppose you have two options to improve the reliability of this system. Each .01 increase in system reliability (assume all stations have to work for entire system to work) will result in $100 increase in profits. Option 1: You can remove any of the stations for a cost of $1500, Option 2: You can add a back-up station to R3 that has a Reliability of .85, at a cost of $500. Calculate the reliability and profits for Option 1 and 2: Which should you choose

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