Suppose a quality manager is to make a decision between two manufacturing

processes for the manufacture of a certain component. Process A costs 150 dollars per unit to

manufacture a component. Process B costs 160 dollars per unit to manufacture a component.

Components have an exponential time to failure distribution with mean time to failure of 300

hours for process A, while components from process B have a mean time to failure of 350 hours.

Because of a warranty clause, if a component lasts less than 400 hours, the manufacturer must

pay a penalty of 75 dollars. Based on the expected cost, would the quality manager select Process

A? Explain why or why not? Show your work.