An engineer is concerned about the potential loss due tofailures of equipment. He obtained the following informationregarding the failure events:
There are two possible failure types F1 and F2, which areunrelated;
F1 occurs with 3% in 10 years probability;
F2 occurs with 7% in 15 years probability, and
Associated costs in case of failures for F1 and F2 are $1000 and$400, respectively.
(a) Which failure event (F1 or F2) is more likely to happenduring a year of operation?
(b) What is the expected loss due to the failures F1 and F2 in ayear?
(c) What is the probability of at least one failure in 5years?
