Answer to Question #683 in Statistics and Probability for marceline pinto

Question #683
Suppose that the probability of a Web server failure is 30 percent per year and the
site is estimated to be down two hours while the system is repaired. If the ecommerce
site hosted on this server generates $10,000 an hour, find how much
money is needed to be budgeted to deal with this risk under the following
a) The server will be repaired within the two hours (i.e., no server replacement is
needed); and
b) The server needs to be replaced and the cost of the new server is $6000.
Expert's answer
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