Heidelberg Manufacturing Specifies the Quality Characteristic for One of Its

question 121

Multiple Choice

Heidelberg Manufacturing specifies the quality characteristic for one of its key components to be 154.0" ± 4.0. The cost of failure is estimated to be $8,000 per unit. Using the Taguchi Quality Loss Function (QLF) the firm has estimated the loss, L(x) , at the quality characteristic that the firm has experienced, x, to be $4,500. What is the estimated loss (to the nearest dollar) if the deviation from the value of the quality characteristic doubled?

• A) $4,000.
• B) $9,000.
• C) $16,000.
• D) $18,000.
• E) $32,000.

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Definitions:

Variable

A characteristic, number, or quantity that can be measured or quantified and can vary among subjects or over time.

Significance Level

The probability of rejecting the null hypothesis when it is actually true, often denoted by alpha and used in statistical hypothesis testing.

Fisher's Exact

A test for determining statistical significance in contingency table analysis, specifically designed for small sample sizes.

Nonparametric Tests

Statistical tests that are not based on the assumption that the data follows a particular distribution, used especially for ordinal or nominal data.