A scientist has just been funded by the National Institutes of Health to conduct a very expensive study. As it happens, the budget has been cut. Therefore, the choice of laboratory for analysis of sample data is being re-visited. Suppose the choice is between laboratory “A” and “B”. Laboratory “A” has a standard deviation of one milligram and each sample analysis costs $3.  Laboratory “B” has a standard deviation of two milligrams but each sample analysis costs $1. All other things being equal, is the principal investigator better off spending $9 on laboratory “A” or spending $9 on laboratory “B”?

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