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. A car manufacturer uses a special control device in each car he produces. Two alternative methods can be used to detect and avoid a

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. A car manufacturer uses a special control device in each car he produces. Two alternative methods can be used to detect and avoid a faulty device. Under the first method, each device is tested before it is installed, and all faulty devices are discovered before installation. The cost is Rs. 2 per test. Alternatively, the control device can be installed without being tested, and a faulty device can be detected and rendered after the car has been assembled, at a cost of Rs. 20 per faulty device. Regardless of which method is used, faulty devices cannot be repaired and must be discarded. A manufacturer purchases the control devices in batches of 10,000. Based on past experience, he estimates the proportion of defective components and the associated probability to be : Proportion of faulty devices 0.80 0-12 0-16 Probability 0.20 0.70 0.10 () Which inspection method should the manufacturer adopt ? (ii) What is the expected value of perfect information (EVPI)

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