The Desired Target Quality Characteristic of a Product of Hanson

question 78

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 per unit.For Hanson,what is the value of k,the cost coefficient in the Taguchi Loss Function?

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

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Definitions:

Form 4797

A tax form used to report the sale or exchange of business property, encompassing both gains and losses.

Investment Purposes

The intent to allocate resources or capital towards assets anticipated to generate income or profit.

Inheritance

Assets received from someone who has passed away, often subject to specific laws and taxes.

Fair Market Value

The price at which an asset would sell in the marketplace between a willing buyer and seller, each having reasonable knowledge of all relevant facts.