The cost of inspection for three different product characteristics A,B,and C,is $10,$12 and $8 respectively.The cost of failure if any one of them breaks down is $100 (full replacement cost of the product).What is the inspection ratio for B?
A)0.10
B)0.08
C)0.12
D)0.05

Question

Quizplus · Accepted Answer

The inspection ratio is calculated as the cost of inspection divided by the cost of failure. For characteristic B, the inspection cost is $12 and the failure cost is $100. Therefore, the inspection ratio is $12/$100 = 0.12.

The Cost of Inspection for Three Different Product Characteristics A,B,and