Final answer:
A good exit criterion from system testing is resolving all severity 1 defects, as this ensures that critical issues are addressed before concluding testing. The correct answer is D. All severity 1 defects must be resolved.
Step-by-step explanation:
An example of a good exit criterion from system testing is D. All severity 1 defects must be resolved. This criterion focuses on ensuring that the most critical issues that could impact the operation of a system are addressed before concluding the testing phase. Focusing on severe defects is a pragmatic approach since not all defects may be fixed due to time, cost, or other constraints, but it is essential that any defects that could cause system failure or significant harm to users are resolved.
Criteria such as completing all tests (A) are important, but not all tests may be critical for system operation, and the budget (B) should not drive when to stop testing. Waiting until all defects are fixed (C) could be impractical, but ensuring that all high severity defects are resolved ensures that the system will not fail catastrophically in production. It is both a realistic and industry-standard practice for determining when to conclude system testing. The correct answer is D. All severity 1 defects must be resolved.