Question: The BMW manager considered using a test by Mobis, a reputable supplier that specializes in testing engine cooling systems. Mobis could carry out a test
The BMW manager considered using a test by Mobis, a reputable supplier that specializes in testing
engine cooling systems. Mobis could carry out a test to determine whether or not the cooling system
was problematic. The test by Mobis indicated that there was a chance that the cooling system
was safe. The manager assumed that the test was perfectly accurate. And, BMW paid $M for the
test. The manager has no idea how accurate the indication will be Your goal is to explain if BMWs
$M payment was reasonable. Please answer the following sub problems.
Given that information, please explain if BMWs $M payment was reasonable. To show your
answer, you must use a decision tree and clearly show how you calculate pro
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