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Determine the probability of improper operations

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Question - FedEx is contemplating whether to investigate a delivery failure. It will cost $6,000 to undertake the investigation and another $18,000 to correct the cause of the improper operations. If operations are run improperly and FedEx fails to make the investigation, operating costs from the various inefficiencies are expected to amount to $33,000.

Required - Determine the probability of improper operations that would make FedEx indifferent between investigating and not investigating the failure.

Reference no: EM132856899

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