Question

In: Operations Management

An insurance company provides four sequential services to its customers. Over the last year, the reliability...

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

Solutions

Expert Solution

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


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