A logistics service provider has an average on-time delivery of 30%, and average correct documentation of 30%. Which of the following values represents the probability that the next delivery would be on-time, damage free, and with correct documentation?
To calculate the probability that the next delivery would be on-time, damage-free, and with correct documentation, we need to find the product of the individual probabilities. Given that the average on-time delivery rate is 30% (0.30) and the average correct documentation rate is also 30% (0.30), we assume the probability of being damage-free is covered within these probabilities. The combined probability is 0.30 * 0.30 * 0.30 = 0.027, which equals 2.7%. The closest value to this in the given options is 3%.
For me, it cannot be 90%. Should be really a 9% but it is not in the potential solutions. What do you think?
Can somebody explain how to calculate the answer?
There should be an option for switching to a different provider. I will not use a provider with such a horrible service failure record.
Probability(on−time and correct documentation)=0.30∗0.30=0.09. Should be 9%