2) conservative approach Solution: Product Contract Outcome Maximum Cost Pass (S1) Fail (S2) 1(d1) $7.50 $6.00 7.50 2(d2) 4.00 7.00 7.00 3(d3) 6.50 3.00 6.50 Min (7.50, 7.00, 6.50) =6.50 Answer: select d3