Ladder Manufacturing Specifies the Quality Characteristic of One of Its $\pm$

question 114

Multiple Choice

Ladder Manufacturing specifies the quality characteristic of one of its popular products to be 0.400" $\pm$ 0.010.An analysis of company records for the last two years suggests that the average cost for warranty repair or replacement is $100 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 loss function associated with this situation?

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

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Definitions:

Annual Lease Payment

The total amount of money required to be paid each year under the terms of a lease agreement.

Direct Financing Lease

A type of lease where the lessor effectively finances the leased asset, and the lease payments are structured to cover the original cost plus a profit margin.

Sales-Type Lease

A lease agreement where the lessor earns interest income over the lease term, treating the transaction like a sale.

Dealer Profit

The margin or financial gain a dealer achieves from the buying and selling of products or securities.