A Machine Produces an Average of 500 Parts Per Day

question 5

Essay

A machine produces an average of 500 parts per day with a standard deviation of 10 parts. This is a normally distributed variable. The percent of defective parts ranges from 8-12%. Parts which need minor repair comprise 75% of the defective parts and cost $5 to repair. The rest of the defective parts cost $20 to repair. What formulas should go in cells B8:B15 to compute the daily cost of defective parts?
$\begin{array}{|c|l|c|c|c|c|c|} \hline& {\text { A }} & \text { B } & \text { C } & \text { D } & \text { E } & \text { F } \\\hline 1 & \text { Initial Conditions: } & & & & & \\\hline 2 & \text { Number of Parts: } & \text { Average } & 500 & \text { Std dev } & 10 & \text { Normal } \\\hline 3 & \% \text { Defective } & \text { Lo } & 8 \% & \text { Hi } & 12 \% & \text { Cont. Uniform } \\\hline 4 & \% \text { Minor Defects } & & 75 \% & & & \text { Constant } \\\hline 5 & \text { Cost of Minor Defect } & & \$ 5 & & & \text { Constant } \\\hline 6 & \text { Cost of Major Defect } & & \$ 20 & & & \text { Constant } \\\hline 7 & & & & & & \\\hline 8 & \text { Units Produced } & 500 & & & & \\\hline 9 & \% \text { Defective } & 8.2 \% & & & & \\\hline 10 & \text { Total \#Defective } & 41 & & & & \\\hline 11 & \text { \#With Minor Defects } & 31 & & & & \\\hline 12 & \text { Cost of Minor Defects } & \$ 155 & & & & \\\hline 13 & \text { \#With Major Defects } & 10 & & & & \\\hline 14 & \text { Cost of Major Defects } & \$ 200 & & & & \\\hline 15 & \text { Total Cost } & \$ 355 & & & & \\\hline\end{array}$

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Definitions:

Modern Discrimination

Present-day biases or prejudices against individuals or groups, which can be subtle and systemic rather than overt.

Situational Prejudice

Bias or discrimination that is triggered by specific situations or contexts, rather than being a constant attribute of an individual.

Authoritarian Personality

A type of personality characterized by a strong adherence to authority, compliance to established norms, and submission to authority figures.

Social Dominance Orientation

An individual's degree of preference for inequality among social groups, with a high orientation favoring hierarchical superiority and a low orientation emphasizing equality.