On each part a backup can be installed with a cost of 40 If

On each part, a backup can be installed with a cost of $40. If the reliability for the backup is 50%, would the installation of this backup be a better option? Support your answer.

Solution

Reliabilty = 1 - Probability of Failure

Reliabilty of backup in this question is 50% (i.e 0.5)

hence,

0.5 = 1 - Probability of Failure

Probability of Failure =0.5

The probability of failure is high therefore the installation of this backup would not be a better option.