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Solution to Dawn Kleeners: 

Solution to Dawn Kleeners Co = 2 x 100 x 6 = 1200 Cu = 5 x 1000 -1200 = 3800 Pc = Co/(Cu+Co) = 1200/5000 =0.24 Decision: 1. the smallest y such that P(Y>y) ≤ pc 2. P(Y>y) ≤ pc and P(Y>y-1) > pc 3. increase y to y+1 if P(Y>y) > pc because “yes” is better than “no”