Acme Manufacturing produces lots of widget 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 is penalized $100 for each .1% increase. Supplying higher-quality batches than required costs Acme $50 for each .1% below specifications. 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?