Question: A manufacturer needs to run tests on 2 separate components of a board, R & Q. These can be tested in either order and if

A manufacturer needs to run tests on 2 separate components of a board, R & Q. These can be tested in either order and if either test fails the board is scrapped. (Board is worthless if R works but Q doesnt, and vice-versa.)

The test costs and the probabilities of failure are:

Test

Cost

P(failure)

R

$6.50

0.05

Q

$8.00

0.10

Construct the decision tree and determine the preferred test order.

Please show all the work.

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