10. An electronic shop receives various types of bulbs from a factory. Assume that there are three possible events: A, B

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10 An Electronic Shop Receives Various Types Of Bulbs From A Factory Assume That There Are Three Possible Events A B 1 (65.48 KiB) Viewed 96 times

10. An electronic shop receives various types of bulbs from a factory. Assume that there are three possible events: A, B, and C, which represent that the incoming lot may contain 10%, 20% or 30% defectives and that each of these events happens with probabilities 50%, 30% and 20% respectively. The manager's action is to accept the lot with 10% or 20% defectives and reject the lot with 30% defectives. In one time, the manager need to decide if one type of bulbs that was just delivered from the factory is acceptable or not. The expected opportunity loss for each event is given below: A B Reject $300 $80 0 Accept 0 0 $700 С (a) Find the optimal EOL act before sampling and the EVPI. (b) Now a random sample of 3 units was drawn. Find the optimal course of action and calculate the EVSI. Give your answer correct to 4 decimal places.