Expected monetary cost

Q38. What is the expected value in dollars for the correction cost of an application program in the first year under the conditions shown below? [Conditions] (1) Program size: 2,000 k steps (2) Potential defective rate of program: 0.04 defects / k steps (3) Annual discovery rate of potential defects: 20% / year (4) Classification of discovered defects: –Major impact: 20% –Minor impact: 80% (5) Correction cost per defect Defects with major impact: 20,000 dollars Defects with minor impact: 5,000 dollars (6) In the first year, only defects with major impact are corrected

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