Phillip$$ Witt, president of Witt Input$$ Devices, wishes to create a portfolio of local suppliers for his new line of keyboards. As the suppliers all reside in a location prone to$$ hurricanes, tornadoes,$$ flooding, and$$ earthquakes, Phillip believes that the probability in any year of a$$ "super$-$event" that might shut down all suppliers at the same time at least $2$ weeks is $4\%.$ Such a total shutdown would cost the company approximately $$$$520,000.$ He estimates the$$ "unique$-$event" risk for any of the suppliers to be $7\%.$ Assuming that the marginal cost of managing an additional supplier is $$$$15,500$ per$$ year, how many suppliers should Witt Input Devices$$ use? Assume that up to three nearly identical local suppliers are available.

Part $2$

Find the EMV for alternatives using$1,2,$ or $3$ suppliers.

$$EMV$(1)=$$$72,70072,700($Enter your response rounded to the nearest whole$$ number.$)$

Part $3$

$$EMV$(2)=$$$51,80051,800($Enter your response rounded to the nearest whole$$ number.$)$

Part $4$

$$EMV$(3)=$$$67,30067,300($Enter your response rounded to the nearest whole$$ number.$)$

Part $5$

Based on the the EMV$$ value, the best choice is to use

two suppliers

$.$