A supervisor is contemplating whether or not to investigate labor efficiency variance in the Assembly Department.It will cost $ 6000 to undertake...

Let p be the probability of superwisor that investigates
the labour efficiency variance . Then the resulting cost  of investigation and
corrrection = $(6000+180000) = $24000

So the expected cost
= 24000p.

If the superwisor does not investigate the labour
efficiency variance, then the  the departmental inefficiency cost =
33000.

So the expected inefficiency cost = 33000*probabilty
that superwisor does not investigate= 33000(1-p)

Since the
question of indetermacy is when both costs are same.

24000p
= 33000(1-p)

24000p =
33000-33000p

(24000+33000)p
=33000

P =
33000/(24000+33000)

p =
33/57

p = 11/19 is the probability that superwisor
investigate.

Also the probability that the superwisor does
not investigate = 1-11/19 = 8/19