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Suppose you work in a microprocessor manufacturing facility and that, before boxing and shipping, each microprocessor undergoes a quality check to avoid shipping defective
Suppose you work in a microprocessor manufacturing facility and that, before boxing and shipping, each microprocessor undergoes a quality check to avoid shipping defective units. The quality checking machine has the following characteristics: a. It declares good microprocessors to be defective (D) with probability p = 0.15. b. It declares defective microprocessors to be good (G) with probability q = 0.03. Suppose there are 3 such quality checking machines that give independent results with the same probabilities. Also let Ho be the hypothesis that the microprocessor is good and let H be the hypothesis that the microprocessor is defective. You receive some new information from manufacturing and customer service saying that... (1) It costs $200 to replace a defective microprocessor after it has been shipped to the customer. (2) It costs $50 each time good microprocessors are discarded. 2
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