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    The DAGR GPS receiver will have a 25% increase in ...

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    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:

    A) Both GPS receivers were produced by the same manufacturer.

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

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

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

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    Solution Preview

    A) Both GPS receivers were produced by the same manufacturer.

    B, C, & D ...

    Solution Summary

    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:

    $2.19

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