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An electronic component in a computer has an output voltage specification of 100 1 milivolts.The loss to the firm for a component that is outside of the specifications is $750.The output voltage for a sample unit is 101 milivolts.
Required:
(1)Calculate the value of k,the cost coefficient in the Taguchi loss function.
(2)Calculate the amount of loss for the unit,L(101).
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Public Company Accounting Oversight Board
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