Deborah Kellogg buys Breathalyzer test sets for the Winter Park Police Department. The quality of the test sets from her two suppliers is indicated in the following table: Percent Defective Probability for Winter Park Probability for Dayton 1% 3% 5% .70 .20 .10 .30 .30 .40 Kellogg orders 10,000 tests per order. A defective Breathalyzer test set can be repaired for $0.50. When determining the costs for each branch (Decision Tree), utilize the number per order (*) the percent defective (*) the repair cost. a. What is the EMV for Winter Park? $ [Select] b. What is the EMV for Dayton? $$127 c. What choice should Deborah Kellogg make? [Select]

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Deborah Kellogg buys Breathalyzer test sets for the Winter Park Police
Department. The quality of the test sets from her two suppliers is indicated in the
following table:
Percent Defective Probability for Winter Park Probability for Dayton
1%
3%
5%
.70
.20
.10
.30
.30
.40
Kellogg orders 10,000 tests per order. A defective Breathalyzer test set can be
repaired for $0.50.
When determining the costs for each branch (Decision Tree), utilize the number per
order (*) the percent defective (*) the repair cost.
a. What is the EMV for Winter Park? $ [Select ]
b. What is the EMV for Dayton? $$127
c. What choice should Deborah Kellogg make? [Select]
>
Transcribed Image Text:Deborah Kellogg buys Breathalyzer test sets for the Winter Park Police Department. The quality of the test sets from her two suppliers is indicated in the following table: Percent Defective Probability for Winter Park Probability for Dayton 1% 3% 5% .70 .20 .10 .30 .30 .40 Kellogg orders 10,000 tests per order. A defective Breathalyzer test set can be repaired for $0.50. When determining the costs for each branch (Decision Tree), utilize the number per order (*) the percent defective (*) the repair cost. a. What is the EMV for Winter Park? $ [Select ] b. What is the EMV for Dayton? $$127 c. What choice should Deborah Kellogg make? [Select] >
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