Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Two companies A and B, operating in different industries, have different costs associated with product failure. Company A sells a chip, costing USD 1, that
Two companies A and B, operating in different industries, have different costs associated with product failure. Company A sells a chip, costing USD 1, that plays a critical role in auto-driven cars braking system. If the chip malfunctions, it may cause severe damage to the car's engine and may also cause loss of lives. Company B produces a large component, costing USD 50, used in video games. The quality of company B's product may affect gaming experience, and if it malfunctions, the user may be able to play but with a slight lag in the frame switching. A user may get this easily fixed on a virtual call with the technical support team. There are two product testing models, X and Y. The model X has higher specificity, and the model Y has higher sensitivity. Note: The positive class is that the product is defective and must be thrown, and the negative class is that the product is of good quality and may be dispatched to the customers. Choose the correct option. Group of answer choices Company A must prefer model Y to model X None of the tests works well None of these Company A must prefer model X
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started