Deborah Kellogg buys Breathalyzer test sets for the Denver Police Department. The quality of the test sets from her two suppliers is indicated in the following table: percent defective probability for winter park probability for technology dayton enterprise 1% 0.65 0.25 3% 0.25 0.25 5% 0.10 0.50 For example the probability of getting a batch of tests that are 1% defective from Winter park technology is 0.65. Because Kellogg orders 10,000 tests per order, this would mean there is a 0.65 probability of getting 100 defective tests out of the 10,000 tests if Winter park technology is used to fill the order. A defectice breathalyzer test can be repaired for $0.50. Although the quality of the test sets of the second supplier, Dayton Enterprises, is lower, it will sell an order of 10,000 test sets fro $30 less than winter park. a) The correct decision tree (with EMVs rounded to the nearest whole number) for Deborah is shown= figure___ b)To maximize the return, Deborah's decision should be_______ C) The EMV of selected alternative for Deborah=$____
Deborah Kellogg buys Breathalyzer test sets for the Denver Police Department. The quality of the test sets from her two suppliers is indicated in the following table:
percent defective probability for winter park probability for
technology dayton enterprise
1% 0.65 0.25
3% 0.25 0.25
5% 0.10 0.50
For example the probability of getting a batch of tests that are 1% defective from Winter park technology is 0.65. Because Kellogg orders 10,000 tests per order, this would mean there is a 0.65 probability of getting 100 defective tests out of the 10,000 tests if Winter park technology is used to fill the order. A defectice breathalyzer test can be repaired for $0.50. Although the quality of the test sets of the second supplier, Dayton Enterprises, is lower, it will sell an order of 10,000 test sets fro $30 less than winter park.
a) The correct decision tree (with EMVs rounded to the nearest whole number) for Deborah is shown= figure___
b)To maximize the return, Deborah's decision should be_______
C) The EMV of selected alternative for Deborah=$____
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