It costs 50 to find out whether a spare part required for repairing a failed device is faulty or not. Installing a faulty spare part causes a damage of 1000. Is it on average more profitable to use a...


It costs
50 to find out whether a spare part required for repairing a failed device is faulty or not. Installing a faulty spare part causes a damage of
1000. Is it on average more profitable to use a spare part without checking if


(1) 1% of all spare parts of that type


(2) 3% of all spare parts of that type


(3) 10 % of all spare parts of that type are faulty?



May 21, 2022
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