plant engineer is about to commence an urgent above normal production run. To ensure meeting the desired production rate, she has decided to transfer and incorporate into the production line a piece of equipment from another line at a cost of $6000. The engineer is considering whether to overhaul this equipment before placing it in the new production line. The piece of equipment costs $1000 to overhaul, whereas if she incorporates the item into the process line and it then breaks down it will cost $1200 to cover the cost of repair and lost time. The engineer estimates that there is a 70% chance that the equipment motor is reliable but is assured that it will be reliable if it is overhauled. A dynamometer test of the motor costs $150 but will only indicate whether the motor is in good or bad condition with a 15% chance that the test results prove invalid. The engineer estimates that there is a 80% chance that the dynamometer test will indicate a reliable motor. If the plant manager wishes to base her decision on expected monetary value, what should be her optimum strategy?