Which of the Following Is Most Likely to Be Categorized

question 181

Multiple Choice

Which of the following is most likely to be categorized as an external failure cost?

• A)the cost of testing a product before shipment
• B)the cost of machinery maintenance to avoid breakdowns during production
• C)the cost of lost future sales after a customer finds a defect in a product
• D)the cost of inspection of materials to be used in production

---

Definitions:

P(B|A)

The likelihood that event B happens after event A has already taken place.

Mutually Exclusive

Two events that cannot happen at the same time, meaning the occurrence of one event means the other cannot occur.

P(A)

The probability of an event A occurring in a given statistical experiment or context.

P(B)

P(B) denotes the probability of an event B occurring in the context of probability theory and statistics.