A $38,000 Coil Winding and Unwinding Machine Is Estimated to Provide

question 3

Essay

A $38,000 coil winding and unwinding machine is estimated to provide additional value to production by $15 per unit. When the machine is operated at 58 units per hour, it needs to be cooled down after 4 hours of operation and receive minor maintenance for 15 minutes. When the machine is operated at 118 units per hour, it needs to be cooled down after 5 hours of operation and receive minor maintenance for 30 minutes. The production line runs 8 hours per day. If each maintenance check costs $625 and the machine has a useful life of 80,000 hours of operations, at what speed should the machine should be operated?

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Definitions:

Normally Distributed Curve

A graphical representation of a distribution of data in which most values cluster around a central peak and taper off symmetrically towards either end, resembling a bell shape.

Standard Deviation

Standard deviation is a statistical measure that quantifies the amount of variation or dispersion of a set of data values from the mean.

Stanine

A method of scaling test scores on a nine-point standard scale, where a higher stanine score indicates better performance.

Cognitive Ability Test (CogAT)

A standardized test designed to measure students' reasoning abilities in the areas of verbal, quantitative, and non-verbal (or spatial) reasoning.