MicroProducts, Incorporated (MPI) manufactures printed circuit boards for a major PC manufacturer. Before a board is sent to the customer, three key components must be tested. These components can be tested in any order. If any of the components fail, the entire board must be scrapped. The costs of testing the three components are provided in the following table, along with the probability of each component failing the test:
a. Create a decision tree for this problem that could be used to determine the order in which the components should be tested to minimize the expected cost of performing the tests.
b. In which order should the components be tested?
c. What is the expected cost of performing the tests in thissequence?