& Problem A.23 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 Probability for Percent Probability for Winter Dayton Defective Park Technology Enterprises 1% 0.70 0.30 3% 0.20 0.35 5% 0.10 0.35 For example, the probability of getting a batch of tests that are 1% defective from Winter Park Technology is 0.70. Because Kellogg orders 12,000 tests per order, this would mean that there is a 0.70 probability of getting 120 defective tests out of the 12,000 tests if Winter Park Technology is used to fill the order. A defective Breathalyzer test set can be repaired for $0.60. Although the quality of the test sets of the second supplier, Dayton Enterprises, is lower, it will sell an order of 12,000 test sets for $37 less than Winter Park. a) The correct decision tree (with EMVS rounded to the nearest whole number for Deborah is shown in Figure 2 b) To maximize the return. Deborah's decision should be to Winter Park Technologies The EMV of selected alternative for Deborah = $(enter your answer as a whole number and include a minus sign il necessary). Enter your answer in the answer box and then click Check Answer All parts showing Clear A MacBook 0 esc 80 F3 000 000 F4 FS FG F1 F2 ! @ # % $ 4 1 2 3 5 6 11 of 14 (14 complete) FIGURE 1 1% D(0.70) Buy from Winter Park -72 3% D(0.20) - 130 -216 - 360 5% (0.10) - 130 1% D(0.30) -72 + $37 3% D0.20) -223 - 216 Buy from Dayton - 360 5% D(0.35) D = Defective Rate OK - 130 Clear All FIGURE 2 1% D(0.70) Buy from Winter Park - 72 3% D(0.20) - 130 -216 - 360 5% D(0.10) - 130 1% D(0.30) - 72 . 3% D(0.35) -223 - 216 + $37 Buy from Dayton - 360 5% D(0.35) D = Defective Rate OK - 130 Clear All FIGURE 3 1% D(0.70) Buy from Winter Park -72 3% D(0.20) 130 - 216 - 360 5% D(0.10) - 130 1% D(0.30) -72 + $37_(-223 3% DO.20) - 216 Buy from Dayton - 360 5% D(0.35) D = Defective Rate OK Clear All MacBOAir