*Use S11.2 for reference. Answer S11.4 only. Thank you*

..S11.2 Phillip Witt, president of Witt Input Devices, wishes to create a portfolio of local suppliers for his new line of keyboards. As the suppliers all reside in a location prone to hurricanes, tornadoes, flooding, and earthquakes, Phillip believes that the probability in any year of a super-event" that might shut down all suppliers at the same time for at least 2 weeks is 3%. Such a total shutdown would cost the company approximately $400,000. He estimates the unique-event" risk for any of the suppliers to be 5%. Assuming that the marginal cost of managing an additional supplier is $15,000 per year, how many suppliers should Witt Input Devices use? Assume that up to three nearly identical local suppliers are available. ..S11.4. Johnson Chemicals is considering two options for its supplier portfolio. Option 1 uses two local suppliers. Each has a "unique-event" risk of 5%, and the probability of a super-event" that would disable both at the same time is estimated to be 1.5%. Option 2 uses two suppliers located in different countries. Each has a "unique-event risk of 13%, and the probability of a super-event that would disable both at the same time is estimated to be 0.2%. a. What is the probability that both suppliers will be disrupted using option 1? b. What is the probability that both suppliers will be disrupted using option 2? c. Which option would provide the lowest risk of a total shutdown