(e) In the risk management example of constat test intervals, a component with exp(-1) life time is tested at regular ti

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E In The Risk Management Example Of Constat Test Intervals A Component With Exp 1 Life Time Is Tested At Regular Ti 1 (126.84 KiB) Viewed 54 times

(e) In the risk management example of constat test intervals, a component with exp(-1) life time is tested at regular time interval I. If it is discovered failed during a test, then it is replaced by a new one. Consider the constant test interval problem with long term T 40yrs, the regular test has the expense $1000 for each time. Strategy(A): Install/repalce with high-quality components with expected life time 8yrs and cost $10,000 for each; Strategy(B): Install/replace with average-quality components with expected life time 5yrs and cost $4,000 for each. Here, no inflation or interest rate is considered. (i) Decide the optimal risk management strategy if your budget is $100,000 in 40 years. (ii) Decide the optimal risk management strategy if your budget is $80,000 in 40 years.