Reference no: EM131754986

Question: The Test Engineering group could run a batch of Superlights through a test program to determine their strength and durability characteristics under simulated flight conditions. Given what the stress group has told him regarding the Superlight, the Test Engineering group manager claims that his test program would be of little value. Further, he says that for Superlights with high repair cost, the test batch will pass his test with a likelihood of only 30%. If the Superlights have moderate repair cost, they will pass the test with a probability of 80%, and if they have a low repair cost, he estimates a 90% passing probability. The manager also cautions that a lot of time and hardware would be needed to conduct the test.

Draw the decision diagram for the aircraft company's decision to buy clairvoyance.