Question: Problem S11.4 Question Help Johnson Chericals is considering two options for its supplier portfolio. Option 1 uses two local suppliers. Each has a unique-event risk

Problem S11.4 Question Help Johnson Chericals is

Problem S11.4 Question Help Johnson Chericals 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 1.4%. 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%. a) The probability that both suppliers will be disrupled using option 1 is (round your response to five decimal places). Enter your answer in the answer box and then click Check Answer ? parts 2 remaining Clear All Check

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