Your company is an insurance underwriter, writing insurance…

Your company is an insurance underwriter, writing insurance policies on a variety of events. You have the following risk matrix, with the likelihood of the events on the left side, and the consequence (in expenses, in millions of USD) along the top. Assume the likelihood of each event is independent of its consequence. Final Exam Q2.png  We are going to use the Risk = Probability x Consequence measurement here. Scenario 1 (hurricane hits small town) has a likelihood of 0.5% and a consequence of $11 million. What is its total risk value? Enter your answer rounded to the whole integer and leave off any currency signs. For example, if you compute $1,234.56 as your answer, you will enter 1235.

Consider the system represented by the following reliability…

Consider the system represented by the following reliability block diagram.  Suppose each component has the following hourly failure rates: λ1 = 0.001, λ2 = λ3 = 0.002, λ4 = λ5 = 0.0015, λ6 = 0.0005, and λ7 = λ8 = λ9 = 0.003.  Find the system reliability for a period of t = 50 hours. Provide your answer to the third decimal place. Final Exam Q1.png