Question: Hung Gho Chan make a part on an assembly line. At one point they find that 2% of units are defective. It costs $1 to

Hung Gho Chan make a part on an assembly line. At one point they find that 2% of units are defective. It costs $1 to inspect each unit at this point, but the inspection would find only 70% of faults. If the faults are left, all parts will be found and corrected further down the line at a cost of $8. Is it worth inspecting all units at this point?

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