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The prestressed concrete pipes have reinforcing wires. The wires can crack when they corrode, which weakens the pipe; therefore, cracking wires are a precursor for a pipe explosion. WSSC was using a break-detection system to detect when the reinforcing wires cracked, and WSSC planned to shut down and repair any pipe in which they detected cracking wires (Shaver, 2013b; Weil, 2013). Explain how this system serves as a risk management process. What is the cost of a false positive? What is the cost of a false negative? How would the relative costs affect how WSSC officials set the threshold for reacting to a warning?

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