A knife manufacturer inserts the blade of the knife into a handle. The probability of a blade being defective is .1 or 10%. The probability of a handle being defective is .05 or 5%, The decision tree would reflect the following:



Path 1: blade defective; handle defective

path 2 blade defective; handle not defective

Path 3 blade not defective; handle defective

Path 4 blade not defective; handle not defective