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Performing life tests on products in order to guarantee quality is a necessity. No systematic procedure is available for developing life tests for components, subsystems, and systems in order to minimize the cost. Life tests are developed uniquely from one among components, subsystems, and systems without incorporating a systems approach toward developing the tests. To guarantee that proper tests have been planned in a cost effective way for components, subsystems, and systems a methodology is required. This paper has proposed a cost effective strategy of developing life tests for systems.