The DAGR GPS receiver will have a 25% increase in reliability over the PLGR GPS

Question

The DAGR GPS receiver will have a 25% increase in reliability over the PLGR GPS receiver. Using the PLGR as an analogy, an analyst estimated that the DAGR would cost 25% more than the PLGR. In order for this to be a good analogy, all of the following assumptions would have to be valid, except for: „Ï    Reliability is a discriminator (cost driver) in the cost of GPS receivers.    The change in cost is relative to the change in reliability.    Both GPS receivers were produced by the same manufacturer.    The PLGR is the GPS system most like the DAGR. The DAGR GPS receiver will have a 25% increase in reliability over the PLGR GPS receiver. Using the PLGR as an analogy, an analyst estimated that the DAGR would cost 25% more than the PLGR. In order for this to be a good analogy, all of the following assumptions would have to be valid, except for: „Ï    Reliability is a discriminator (cost driver) in the cost of GPS receivers.    The change in cost is relative to the change in reliability.    Both GPS receivers were produced by the same manufacturer.    The PLGR is the GPS system most like the DAGR.

Explanation / Answer

Answer : Answer '3' is correct. On the basis of above stanza we assume that

1) Reliability is a discriminator (cost driver) in the cost of GPS receivers.

2)    The change in cost is relative to the change in reliability.

3) The PLGR is the GPS system most like the DAGR.

But we can not assume that both GPS receivers were produced by the same manufacture.

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