Question: Output from a process contains 0 . 0 1 defective unit. Defective units that go undetected into final assemblies cost $ 2 8 each to

Output from a process contains 0.01 defective unit. Defective units that go undetected into final assemblies cost $28 each to replace. An inspection process, which would detect and remove all defectives, can be established to test these units. However, the inspector, who can test 20 units per hour, is paid $9 per hour, including fringe benefits. Should an inspection station be established to test all units?

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