Ai lun, a management trainee at a large new yorkminusbased bank, is trying to estimate the real rate of return expected by investors. he notes that the 3minusmonth tminusbill currently yields 3 percent , and consumer prices have been rising steadily at a 2% rate for several years. what should ai lun's estimate of the real rate be?

Aproduction line has three machines a, b, and c, with reliabilities of .96, .86, and .85, respectively. the machines are arranged so that if one breaks down, the others must shut down. engineers are weighing two alternative designs for increasing the line’s reliability. plan 1 involves adding an identical backup line, and plan 2 involves providing a backup for each machine. in either case, three machines (a, b, and c) would be used with reliabilities equal to the original three. a. compute overall system reliability under plan 1. (round your intermediate calculations and final answer to 4 decimal places.) reliability b. compute overall system reliability under plan 2. (round your intermediate calculations and final answer to 4 decimal places.) reliability c. which plan will provide the higher reliability? plan2plan1