Question

Problem 4: 20 points) A particular circuit works if all 10 of its component devices work. Each circuit is tested before leaving the factory. Each working circuit can be sold for k dollars, but each nonworking circuit is worthless and must be thrown away. Each circuit can be built with either ordinary devices or ultrareliable devices. An ordinary device has a failure probability of q- 0.1 while an ultrareliable device has a failure probability of 2. independent of any other device. However, each ordinary device costs1 dollar while an ultrareliable device costs 3 dollars Should you build your circuit with ordinary devices or ultrareliable devices in order to maximize your expected profit E[R? Keep in mind that your answer will depend on k.

Answer 1

Sole- 023- ordtnapton option :(.lot..-9 0' (O uuttra Reliable opto yo that ves maximu们 ex Petred profit, com fan 1 tuoex fewed prop,ts we see that -H 540the cir expected give beste expected valwe. Solution^ nr) Let R denote the pro仆resul h'ng devfces to rot -(ail, uohere each devfce -Pailt Leti option, tねじ ΐς the- opHon to use ether ordinary ponent denote the fncome amd 'e denote he Colt, but ov ultra stelfable devíces ,c fc constant 1 fc a Yandoatiale ble that ha non Aero vawe atl ten component devfceS have noc onl