Question

microproducts, inc (MPI) manufactures printed circuit boards for a major PC manufacturer. Before a board is sent to the customer, three key componentes must be tested. These components can be tested in any order. If any of the components fail, the entire board must be scrapped. The cossts of testing the three components are: X $1.75, Y $2, Z $2.40 with probability of failure of 0.125 (X), 0.075 (Y), and 0.140 (Z). a. Create a decision tree for this problem that could be used to determine the order in which the components should be tested to minimize the expected cost of performing the tests. Please show what the entries are in the Decision Tree.

Answer 1

The required decision tree is:-