The Desired Target Quality Characteristic of a Product of Hanson

question 57

Multiple Choice

The desired target quality characteristic of a product of Hanson Component Manufacturing is 0.5. The customer-service manager knows that customers are likely to complain when the specification is off the desired quality characteristic by more than 0.025. On average, it costs the firm $2,000 to handle and resolve each complaint. The production manager of the Hanson Manufacturing suggests that the company test the product more thoroughly before shipping. The cost of additional testing and adjustments is estimated at $30.00 per unit.

For Hanson, what is the value of k, the cost coefficient in the Taguchi Quality Loss Function (QLF) , rounded to the nearest dollar?

• A) $5.
• B) $2,000.
• C) $80,000.
• D) $1,600,000.
• E) $3,200,000.

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Definitions:

Proposition

A statement that expresses a judgement or opinion which can be either true or false.

Modus Ponens

A logical argument form where if a conditional statement ("if p then q") and its antecedent (p) are true, then the consequent (q) is also true.

Antecedent

In logic and grammar, the antecedent is the preceding clause, phrase, or word to which another word, particularly a pronoun, refers back.

Pure Hypothetical

A speculative statement or proposition that is considered in abstraction from any particular instance or factual situation.