Problem
A new machine coolant product has an improved formula that enables it to more effectively prevent a machine from overheating than its next closest substitute.
i. Classify the differentiating factor of this new coolant into the appropriate cell of the product-needs framework described in the course. How might this framework be used to identify other differentiating factors of this product?
ii. When the new coolant is used, the probability that a machine overheats is 0.003. When its next closest substitute is used, the probability that a machine overheats is 0.021. If the cost to a company of repairing an overheated machine is $12,000, what is the value to that company of the new coolant's greater effectiveness?