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Exam Code: AD0-E307

Exam Name: Adobe Campaign Standard Business Practitioner

Certification Provider: Adobe

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NEW QUESTION: 1
You are trying to determine whether or not to conduct 100% final system tests of 500 ground-based radar units at the factory. The historical radar field failure rate is 4%; the cost to test each unit in the factory is $10,000; the cost to reassemble each passed unit after the factory test is $2,000; the cost to repair and reassemble each failed unit after factory test is $23,000; and the cost to repair and reinstall each failed unit in the field is $350,000. Using decision tree analysis, what is the expected value if you decide to conduct these tests?
A. $7 million
B. $5.96 million
C. $6.42 million
D. $5.5 million
Answer: C
Explanation:
Test: $5M + $960K + $460K = $6.42M; Don't Test: $7M. [Planning] [email protected], [email protected] Guide, 2013, 339


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