Company ABC manufactures a part used in renewable energy industry. Historically, it has been observed that customers return the part for adjustment (under warranty) when the length of the part deviates from the nominal value by 5 inches which then costs the company $100 to repair. However, the same adjustment can be made in the factory at a much lower cost of $36 before shipping it to the customers. What is the deviation of length (in inches) from the nominal value for which it is cheaper to adjust the part at the company ABC (factory tolerance) before shipping it to customer? [Select the appropriate range in which your answer falls.] O More than O but less than or equal to 2 O More than 2 but less than or equal to 4 More than 4 but less than or equal to 6 More than 6 but less than or equal to 8 O More than 8

Company ABC manufactures a part used in renewable energy industry. Historically, it has been observed that customers return the part for adjustment (under warranty) when the length of the part deviates from the nominal value by 5 inches which then costs the company $100 to repair. However, the same adjustment can be made in the factory at a much lower cost of $36 before shipping it to the customers. What is the deviation of length (in inches) from the nominal value for which it is cheaper to adjust the part at the company ABC (factory tolerance) before shipping it to customer? [Select the appropriate range in which your answer falls.] O More than O but less than or equal to 2 O More than 2 but less than or equal to 4 More than 4 but less than or equal to 6 More than 6 but less than or equal to 8 O More than 8

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Description: Company ABC manufactures a part used in renewable energy industry. Historically, ithas been observed that customers return the part for adjustment (under warranty)when the length of the part deviates from the nominal value by 5 inches which thencost

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Concept explainers

Inverse Normal Distribution

The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.

Mean, Median, Mode

It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.

Z-Scores

A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.

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Question

Company ABC manufactures a part used in renewable energy industry. Historically, it
has been observed that customers return the part for adjustment (under warranty)
when the length of the part deviates from the nominal value by 5 inches which then
costs the company $100 to repair. However, the same adjustment can be made in the
factory at a much lower cost of $36 before shipping it to the customers.
What is the deviation of length (in inches) from the nominal value for which it is
cheaper to adjust the part at the company ABC (factory tolerance) before shipping it
to customer? [Select the appropriate range in which your answer falls.]
O More than O but less than or equal to 2
More than 2 but less than or equal to 4
O More than 4 but less than or equal to 6
O More than 6 but less than or equal to 8
More than 8

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