In: Operations Management
An insurance company provides four sequential services to its customers. Over the last year, the reliability of each of these services was 94%, 97%, 95%, and 91%.
What is their overall reliability?
Question 19 options:
a. 0.9425 |
|
b. 0.9500 |
|
c. 0.9999 |
|
b. 0.7883 |
When services are in sequence, overall reliability is the product of the reliability of each service
Overall reliability = 0.94*0.97*0.95*0.91 = 0.7883