1) There are two general approaches to forecast: qualitative and quantitative.
Which one consist mainly of subjective inputs, which are often defy precise numerical description.
a. Qualitative
b. Quantitative
Forecast based on time-series data is
a. Qualitative
b. Quantitative
2) A hospital fire alarm system is made up of three alarms , with the reliability of .95, .97 and .99. In order for the system to function properly in an event of a firs each of the alarms must function. What is the probability that all three alarms will be activiated? (hint: success is defines as the probability that all three alarms will work)
3) Due to the extreme cost of interrupting production, a firm has a standby machine available in case the main system breaks down The machine in use has a reliability of .94 and the backup has a reliability of .90. In the event of a failure the backup can be pressed into service. Compute the system reliability.