11.1 A manufacturer of medical devices uses shape memory alloys (notably nickel-titanium) to manufac ture novel devices. The alloys can be heated at one temperature then heated to recover their original shape. They can be elastically deformed 10-20% more than the conventional materials. The manu- facturer produces a "micro vessel correction" device that, when inserted into blood vessels, is warmed by the blood and expands outward to maintain the desired vessel shape. Experimental results show that the device experiences a constant failure rate of 0.008 333 fail- ures/month. The price of the device is $1250, and the yearly production of the device is 3000 devices. Assume that the manufacturer wishes to extend a five-year warranty for this device. Determine the warranty reserve fund and the adjusted price of the device.11.1 A manufacturer of medical devices uses shape memory alloys (notably nickel-titanium) to manufac ture novel devices. The alloys can be heated at one temperature then heated to recover their original shape. They can be elastically deformed 10-20% more than the conventional materials. The manu- facturer produces a "micro vessel correction" device that, when inserted into blood vessels, is warmed by the blood and expands outward to maintain the desired vessel shape. Experimental results show that the device experiences a constant failure rate of 0.008 333 fail- ures/month. The price of the device is $1250, and the yearly production of the device is 3000 devices. Assume that the manufacturer wishes to extend a five-year warranty for this device. Determine the warranty reserve fund and the adjusted price of the device