A Critical Part Has a Manufacturing Specification (In Cm) of 0.325

question 4

Multiple Choice

A critical part has a manufacturing specification (in cm) of 0.325 ± 0.010. Based on historic information, if this measurement is larger than 0.335 or smaller than 0.315 the product fails at a cost of $120. Determine the Taguchi loss function.

• A) L(x) = 1,200,000 (0.325 − 0.315)²
• B) L(x) = 1,200,000 (x − 0.325)²
• C) L(x) = 1,200 (x − 0.325)²
• D) L(x) = 1,200 (0.325 − 0.315)²

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Definitions:

Compound-Interest GIC

A Guaranteed Investment Certificate (GIC) that grows by earning interest on the principal and the accumulated interest over time.

Percent Increase

The proportionate growth of a value over time, expressed as a percentage of the initial amount.

Successive Years

A term used to describe years that follow one after another without interruption.

Loan

A borrowed amount of money that is to be repaid along with interest.