Oslo Company's target quality characteristic, T, for one of its key components is set at 82. Using the Taguchi Quality Loss Function (QLF) the company has determined the cost coefficient, k, to be $6,000. What is the estimated loss, L(x), if the value of the quality characteristic, x, is 85? (Round your answer to the nearest dollar.)
A) $1,500.
B) $4,500.
C) $18,000.
D) $42,500.
E) $54,000.

Question

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The Answer of Oslo Company's target quality characteristic, T, for one of its key components is set at 82. Using the Taguchi Quality Loss Function (QLF) the company has determined the cost coefficient, k, to be $6,000. What is the estimated loss, L(x), if the value of the quality characteristic, x, is 85? (Round your answer to the nearest dollar.)
A) $1,500.
B) $4,500.
C) $18,000.
D) $42,500.
E) $54,000.

Oslo Company's Target Quality Characteristic, T, for One of Its