Investigating a Process (L.O.2): A production manager is considering whether to investigate a manufacturing process. The cost of investigation is $5.000, and if the process is out of control, the cost of correcting it will be $15,000. If they correct it, the present value of cost savings until Required: the next scheduled inspection will be $50,000. The in-control probability is .75 and the out-of-control probability is .25.

a. Should the process be investigated? Why or why not?

b. At what out-of-control probability would the manager be indifferent about whether to investigate?