The Quality Control Manager for the NKA Inc -What Alternative Action Should Be Selected According to Expected Monetary

question 79

Essay

The quality control manager for the NKA Inc.must decide whether to accept (alternative 1),further analyze (alternative 2),or reject (alternative 3)the shipment (lot)of incoming material.The historical data indicates that there is 30% chance that the lot is poor quality (S₁),50% chance that the lot is fair quality (S₂),and 20% chance that the lot is good quality (S₃).Assume the following payoff table is available.The values in the payoff table are in thousands of dollars. $$\begin{array} { l c c c } & { \text { States of Nature } } \\\text { Decision } & \mathrm { S } _ { 1 } & \mathrm {~S} _ { 2 } & \mathrm {~S} _ { 3 } \\\text { Accept } & 20 & 30 & 90 \\\text { Further analyze } & 60 & 70 & 15 \\\text { Reject } & 80 & 50 & 30\end{array}$$
-What alternative action should be selected according to expected monetary value criterion?

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Definitions:

Electroconvulsive Therapy

A medical treatment for severe mental illness wherein electric currents are passed through the brain to induce brief seizures, with the goal of relieving symptoms.

Administered Daily

Refers to something, typically medication or treatment, that is given or applied once every day consistently.

Damaging The Brain

Refers to harm or injury to the brain's structure or function, which can result from accidents, diseases, or neurological conditions.

ICD-10 Series

International Classification of Diseases, 10th Revision, a medical coding system used to classify and code all diagnoses, symptoms, and procedures.