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Indifferent about whether or not to accept the lot

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Reference no: EM131737497

If the cost of doing 100% inspection of all received units is $1.65 and the cost of replacing defective units when those defects become apparent later in the process is $14, at what proportion of defects would the organization be indifferent about whether or not to accept the lot without 100% inspection?

Answer with a decimal rounded to three places.

Reference no: EM131737497

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