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MicroProducts manufactures printed circuit boards for a major PC manufacturer. Before a board is sent to the customer, three key components must be tested. If
MicroProducts manufactures printed circuit boards for a major PC manufacturer. Before a board is sent to the customer, three key components must be tested. If any of the components fail, then the entire board must be scrapped. Once one of the components fails, the testing is finished for that board. The costs of testing each of the three components are provided in the following table, along with the probability of each component failing the test. The company wants to determine an optimal strategy for testing the components, so what order to test the components. a) Construct a decision tree for this problem. Be sure to specify the probabilities at all event nodes and the terminal values. (Submit copy of Handwritten answer, 5 pts) b) Using the Expected Value criterion, find an optimal testing strategy. (Submit copy of Handwritten answer, 5 pts) c) Identify and interpret the optimal testing strategy in words. What is its expected value
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