Question: A manager is considering if a quality inspector should be hired to find defective units in a process. The process is known to have a

A manager is considering if a quality inspector
A manager is considering if a quality inspector should be hired to find defective units in a process. The process is known to have a proportion of defectives of p=0.003. Defectives that pass the inspection point considered cost the firm $243 per unit. An inspector can inspect 40 units per hour and is paid $20 per hour. Which is of the following is true: The manger should be indifferent, no saving or loss O The inspector should be hired because that will result in a net expected additional savings of $0.23. O The inspector should be hired because that will result in a net expected additional savings of $0.63. O The inspector should not be hired because that will result in a net expected additional cost of $0.71. The inspector should not be hired because that will result in a net expected additional cost of $0.23

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