The life length X of an electronic component follows an exponential distribution. There are two processes by which the component may be manufactured. The expected life length of the component is 100h if process I is used to manufacture, while it is 150h if process II is used. The cost of manufacturing a single component by process I is Rs.10, while it is Rs.20 for process II. Moreover if the component lasts less than the guaranteed life of 200h, a loss of Rs.50 is to be borne by the manufacturer. Which process is advantageous to the manufacturer?
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