8. Acme Manufacturing produces widget batches with .8%,1%,1.2%, and 1.4% defectives according to the respective probabilities .4, .3, .25, and .05. Three customers, A, B, and C, are contracted to receive batches with no more than .8%, 1.2%, and 1.4% defectives, respectively.

If the defectives are higher than contracted, Acme will be penalized $100 for each .1% increase. Conversely, supplying higher-quality batches than required costs Acme $50 for each.l%. Assume that the batches are not inspected before shipment.

(a) Draw the associated decision tree.

(b) Which of the three customers should have the highest priority to receive their order?