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The DAGR GPS receiver will have a 25% increase inreliability 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-

Reliability is decriminator (cost driver) in the cost of GPS receivers

Both GPS receivers were produced by the same manufacturer

The PLGR is the GPS system most like the DAGR

The change is cost is relative the change in reliability

Operation Management, Management Studies

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