Question: Consider the situation of Example (10.5), where the proper functioning of a satellite was tested. The satellite manufacturer has the choice between two systems A

Consider the situation of Example (10.5), where the proper functioning of a satellite was tested. The satellite manufacturer has the choice between two systems A and B. The signal-to-noise ratio of system A is m.A/

1 =

p v D 2, at a price of e 105. System B, with a ratio of m.B/

1 =

p v D 1, costs only e 104. For both systems, each second of transmitting a signal costs e 102, and the satellite is to be tested a total of 100 times. For each individual test, the transmission must be long enough to ensure that the error probabilities of type I and II are both  0:025. Which system should the manufacturer use?

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