Ladder Manufacturing Specifies the Quality Characteristic of One of Its

question 122

Multiple Choice

Ladder Manufacturing specifies the quality characteristic of one of its popular products to be 0.400" ± 0.010. An analysis of company records for the last two years suggests that the average cost for warranty repair or replacement is $100.00 per unit. The customer service manager believes that the product is likely to fail during the warranty period when the quality characteristic exceeds on either side of the target of 0.400, by the tolerance of 0.010.

What is the cost coefficient, k, for the Taguchi Quality Loss Function (QLF) associated with this situation? Round answer to nearest dollar.

• A) $10.
• B) $500.
• C) $10,000.
• D) $1,000,000.
• E) $2,000,000.

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Definitions:

Central Bank

A major financial institution responsible for overseeing the monetary system of a nation or group of nations, controlling inflation, issuing currency, and setting interest rates.

Government Bonds

Securities issued by a government to raise funds from the public with a promise to pay periodic interest payments and to return the face value on maturity.

Inflation

An economic condition characterized by a general increase in prices and fall in the purchasing value of money.

GDP Deflator

A measure of the price level for all domestically produced goods and services in an economy, indicating the rate of inflation or deflation.