Pandra Manufacturing obtained the following measurements on the quality characteristic of the product from its operations in the last few months:

Question

Quizplus · Accepted Answer

The company has determined that no customer will accept any unit that deviates more than 0.04 from the target quality characteristic of 0.5.The company estimated that each rejection would cost the company $500. Required: (1)Determine the amount of quality loss for each of the observed values of the quality characteristic presented in the above table. (2)Based on the data you generate in response to (1)above,determine the expected loss given the probabilities presented in the above table. (3)Use the formula EL(x)= k ( $\sigma$²+ D²)to verify your answer in (2),where $\sigma$² = S (x - x-bar)f(x)and D = the deviation of the mean value of the quality characteristic from the target value = (x-bar - T). Please see Feedback for answers. Feedback: (1)k = $500/(0.04)² = $312,500 (2)See table below: 11ea6e70_bd58_d7b4_8f54_951e9cf5c6a3_TB1699_00 (3)Determining D and $\sigma$ 2: 11ea6e70_bd58_fec5_8f54_b5c2e747d607_TB1699_00 D = (x-bar - T)= (0.4962 - 0.5000)= 0.0038.D2 = 0.00001444.EL(x)= k ( $\sigma$2+ D2).EL(x)= $312,500 (0.00033156 + 0.00001444)= $108.125

Pandra Manufacturing Obtained the Following Measurements on the Quality Characteristic