$1$

There is a $2$ percent error rate at a specific point in a production process. If an inspector is placed at this point, all the errors can be detected and eliminated. However, the inspector is paid $$11$ per hour and can inspect units in the process at the rate of $53$ per hour.

If no inspector is used and defects are allowed to pass this point, there is a cost of $$10$ per unit to correct the defect later on$.$

$10$

Assume that the line will operate at the same rate $($i$.$e$.,$ the current production rate$)$ regardless of whether the inspector is hired or not.

a$.$ If an inspector is hired, what will be the inspection cost per unit?

Note: Round your answer to $3$ decimal places.

$01$:$14$:$25$

$\backslash$table$[[$Cost per unit$]]$

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Hint

References

b$.$ If an inspector is not hired, what will be the defective cost per unit? Note: Round your answer to $3$ decimal places.

Cost per unit

c$.$ Should an inspector be hired based on costs alone?

No

Yes