1. a) Planters Bank in Los Banos, Laguna processes loan applications through three clerks
(denoted by Ci=1,2,3) set up in series: If C1, C2 and C3 have reliabilities of 0.91,0.79 and 0.95
respectively, what is the reliability of the loan process? b) Bank management is disturbed that its
loan application process has a reliability limited to the figure you obtained in (a). Show how
employing redundancy can increase reliability of the loan process. Indicate the percentage in
reliability improvement. 2. Danamaisie Resurreccion Fruit Exports, Inc.(DRFEI) requires four
more components to complete its fruit processing plant set-up. It puts together the final assembly
for its fruit processing plant by arranging these components as follows: These components can be
purchased from three different vendors who have supplied the following reliability data: a) If
DRFEI decides to use only one vendor to supply all 4 components, which vendor should be
selected? Why?