new machine coolant product has an improved formula that enables it to more

effectively prevent a machine from overheating than its next closest substitute.

(a) Classify the differentiating factor of this new coolant into the appropriate cell of the

product-needs framework described in the course.

(b) How might the product-needs framework be used to identify other differentiating factors

of this product?

(c) When the new coolant is used, the probability that a machine overheats is 0.003. When

its next closest substitute is used, the probability that a machine overheats is 0.021. By

how much does the new coolant (i.e., the differentiating factor) reduce the probability of

overheating? Show and explain your work.

(d) Here is an incorrect answer to Part (c): 0.05. If this were the correct answer, and if the

cost to a company of repairing an overheated machine is $12,000, what is the value to

that company of the new coolants greater effectiveness? Show and explain your work.