Homework Help is Here – Start Your Trial Now!
Math
Statistics
n a manufacturing process, lots having 10%, 12%, 14% or 16 defectives are produced according to the respective probabilities 0.2, 0.35, 0.15 and 0.3. Three customers have contracts to receive lots from the manufacturer. The contracts specify that the percentages of defectives in lots shipped to customers A, B and C should not exceed 10, 12 and 14, respectively. If a lot has a higher percentage of defectives that stipulated, a penalty of $ 200 per percentage point is incurred. On the other hand, supplying better quality than required costs the manufacturer $150 per percentage point. If the lots are not inspected prior to shipment, which customer should have the highest priority for receiving the order?

n a manufacturing process, lots having 10%, 12%, 14% or 16 defectives are produced according to the respective probabilities 0.2, 0.35, 0.15 and 0.3. Three customers have contracts to receive lots from the manufacturer. The contracts specify that the percentages of defectives in lots shipped to customers A, B and C should not exceed 10, 12 and 14, respectively. If a lot has a higher percentage of defectives that stipulated, a penalty of $ 200 per percentage point is incurred. On the other hand, supplying better quality than required costs the manufacturer $150 per percentage point. If the lots are not inspected prior to shipment, which customer should have the highest priority for receiving the order?

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
See similar textbooks
icon
Related questions
Question

In a manufacturing process, lots having 10%, 12%, 14% or 16 defectives are produced according to the respective probabilities 0.2, 0.35, 0.15 and 0.3. Three customers have contracts to receive lots from the manufacturer. The contracts specify that the percentages of defectives in lots shipped to customers A, B and C should not exceed 10, 12 and 14, respectively. If a lot has a higher percentage of defectives that stipulated, a penalty of $ 200 per percentage point is incurred. On the other hand, supplying better quality than required costs the manufacturer $150 per percentage point. If the lots are not inspected prior to shipment, which customer should have the highest priority for receiving the order?

Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman
SEE MORE TEXTBOOKS