Ladder Manufacturing Specifies the Quality Characteristic of One of Its

question 10

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 amount of the estimated loss, L(x) , using a Taguchi Quality Loss Function (QLF) , when the actual quality characteristic, x, is 0.405? (Round final answer to nearest dollar.)

• A) $25.
• B) $5,000.
• C) $10,000.
• D) $400,000.
• E) $405,000.

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Definitions:

Single-Member Electoral System

An electoral system in which constituencies elect one representative each to a legislative body.

Proportional Representation

An electoral system in which parties gain seats in proportion to the number of votes cast for them. This system aims to ensure that political representation is more accurately reflected.

Aggregate Interests

The combined concerns, wants or needs of a group of people that are collected to represent or reflect a broader public interest.

Pyramid

A structure with a square or triangular base and sloping sides that meet in a point at the top, often used as a tomb in ancient Egypt.