31. A company receives shipments of certain items. It should decide whether to accept or reject the shipment, on the basis of inspection of a sample selected from the shipment. From the past experience, it is known thatthe percentage of defective items in a batch of shipment is either 1, 2 or 5, the probabilities for which are 0.5, 0.3 and 0.2, respectively. The company can accept only those batches which have 1 per cent defectives. The cost ofrejecting a good batch, that is, batch with 1 per cent defectives is Rs 600. The cost of accepting a batch with 2 per cent defectives is Rs 400, and the cost of accepting a batch with 5%

defectives is Rs 600.

A sample of 10 items has been selected from the shipment and two items are found to be defective. The conditional probabilities of getting 2 defectives in a sample of 10 items from a batch of 1 %, 2% and 5% defective are calculated as 0.083, 0.185, and 0.265 respectively.

Determine whether the shipment should be accepted.