Deborah Kellogg buys Breathalyzer test sets for the Denver Police Department. The quality of the test sets from her two suppliers is indicated in the following table:

$\backslash$table$[[\backslash$table$[[$Percent$],[$Defective$]],\backslash$table$[[$Probability for Winter$],[$Park Technology$]],\backslash$table$[[$Probability for$],[$Dayton$],[$Enterprises$]]],[1\%,0\mathrm{.}70,0\mathrm{.}35],[3\%,0\mathrm{.}25,0\mathrm{.}35],[5\%,0\mathrm{.}05,0\mathrm{.}30]]$

For example, the probability of getting a batch of tests that are $1\%$ defective from Winter Park Technology is $0\mathrm{.}70.$ Because Kellogg orders $15,000$ tests per order, this would mean that there is a $0\mathrm{.}70$ probability of getting $150$ defective tests out of the $15,000$ tests if Winter Park Technology is used to fill the order. A defective Breathalyzer test set can be repaired for $$0\mathrm{.}60.$ Although the quality of the test sets of the second supplier, Dayton Enterprises, is lower, it will sell an order of $15,000$ test sets for $$25$ less than Winter Park.

a$)$ The correct decision tree $($with EMVs rounded to the nearest whole number$)$for Deborah is shown in

Figure $1$

Figure $2$

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Figure $3$

FIGURE $1$

E

$D=$ Defective Rate

FIGURE $2$

E

$D=$ Defective Rate

MacDonald Products, Inc., of Clarkson, New York, has the option of

$($a$)$ proceeding immediately with production of a new top$-$of$-$the$-$line stereo TV that has just completed prototype testing or

$($b$)$ having the value analysis team complete a study.

If Tyrone Martin, VP for operations, proceeds with the existing prototype $($option a$),$ the firm can extect sales to be $100,000$ units at $$550$ each, with a probability of $0\mathrm{.}23$ and a $0\mathrm{.}77$ probability of $80,000$ at $$550.$ If$,$ however, he uses the value analysis team $($option b$),$ the firm expects sales of $85,000$ units at $$710,$ with a probability of $0\mathrm{.}77$ and a $0\mathrm{.}23$ probability of $70,000$ units at $$710.$ Value engineering, at a cost of $$105,000,$ is only used in option b$.$ Which option has the highest expected monetary value $($EMV$)?$

The EMV for option a is $$46090000$ and the EMV for option $b$ is $$46269500.$ Therefore, option has the highest expected monetary value. $($Enter your responses as integers.$)$ This is all i have for it:$($