Homework Answers
(a)
Firms probable perfect order performance = 0.99*0.99*0.99*0.99*0.94*0.94*0.96*0.96
Firms probable perfect order performance = 0.782238 = 78.2%
(b)
In case 1, POP = 86.8%
In case 2, POP = 78.2%
Percentage change = 78.2 - 86.8 = (-8.6) = 8.6% decrease
The perfect order performance decreased by 8.6 percentage points.
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