Question: what is the probability that both supplies will be disrupted using option 1? rounded to fice decimal places what is the probability that both supplies
- what is the probability that both supplies will be disrupted using option 1? rounded to fice decimal places
- what is the probability that both supplies will be disrupted using option 2? rounded to fice decimal places
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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