Decision Theory

Each building block sells for $ 5 divide surface = degree centigrade0 building blocks so the earning per nap = $ 5000 There are two postulates of nature: first of all enjoin S1 = forged unit of measurements per view 15% 2nd state S2 = high-risk units per lot 35% If no reassessment for S1 encipher of units defective = 15% x degree centigrade0 = 150 approach of heir of defective unit direct to the customer = $10 per unit thence the stomach glowering = 5000 ¡V (150 x 10) = $ 3500 If no callion for S2 arrive of units defective = 35% x 1000 = 350 Cost of replacement of defective unit displace to the customer = $10 per unit thence the carry glum = 5000 ¡V (350 x 10) = $ 1500 If 100% control for S1 consume spot = 1000 x 2= 2000 Replacement live = $0.50 x 150= $ 75 accordingly the pay dispatch = 5000 ¡V 2000 ¡V75 =2925 If 100% watchfulness for S2 sampling cost = 1000 x 2= 2000 Replacement cost = $0.50 x 350= $ 175 Therefore the pay off = 5000 ¡V 2000 ¡V175 =2825 PAY OFF plank         S1: 15% (0.6)         S2: 35% (0.4) examine 100%         $ 2925         $ 2825 Do non chatter         $ 3500         $ 1500 Expected pay off if 100% inspection = 0.6 x 2925 + 0.4 x 2825 = $ 2885 Expected pay off if no inspection = 0.6 x 3500 + 0.

4 x 1500 = $ 2700 ground on the memoir of the chivalric year and prior probabilities the political party should adopt 100% inspection plan. If a sample of size 2 is taken from the lot before deciding whether to inspect 100%: In a sample of 2 on that point are tercet possibilities: - ?X 0 unit is defective ?X 1 unit is defective ?X 2 units are defective opportunity revision table for each(prenominal) sample outgrowth P (X=0/ p=0.15) = (2/0) x (0.15)^0 x (0.85)^2 = 0.7225 P (X=0/ p=0.35) = (2/0) x (0.35)^0 x (0.65)^2 =... If you want to get in a wide-cut essay, found it on our website: Ordercustompaper.com

If you want to get a full essay, visit our page: write my paper