In: Operations Management
A public health department is evaluating the possible causes for a vaccine shortage during a major flu outbreak. The probability of a flu outbreak is estimated to be 10%. The department uses two suppliers, Vendor A and Vendor B. The following is their analysis of the leading causes for a shortage:
Answer:
Answer:
Probability of shortage for Vendor A= 0.05+0.10-(0.05*0.10)
= 0.145
Probability of shortage for Vendor B= 0.05+0.10-(0.05*0.10)
= 0.145
Probability of Vaccine Shortage = P(Vendor A) * P(Vendor B)
=0.145 * 0.145
=0.021 or 2.1%
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