12 Jun the super-quants on your team was able to adapt the learning
Question
Question:
One of the super-quants on your team was able to adapt the learning curve
formula to predict the failure rate of servers in the server farm.
F(x) = Ae^(Gx) 8.8e^(0.08(10x)
F(x) = number of failures in a population of 100,000 servers of age x
A = Initial mortality rate
G = Exponential rate of increase mortality for an increase in age x
e = Mathematical expression (Function EXP in excel) which approximates 2.71828…
Based on the equation above derive failure rate from age 2.5 to 9.0 years.
Assume the average server costs $100,000 and the average age of your server farm is 7 years. Your ops
team suggest that they are reducing the average failure rate of your server farm from 4% to 1% in order to
service enterprise customers – what would this mean to your cost basis
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