The specifications on an electronic component in a target-acquisition system are that its life must be between 12264h and 18396h. The manufacturer realizes a price of $37 per unit produced. However, defective units will be returned with a $9 penalt cost per unit (the manufacturer pays the price plus $9 back for each defective unit). The manufacturer has two alternative production lines both have normally distributed life hours. Mean and standard deviation hours are given in the table below. Process 1 has a production cost of $ 0.15/unit. Production costs for process 2 are twice those for Process 1. (Hours) Process 1 Process 2 Mean 15330 16863 Standard Deviation 3066 1533 Questions: a. What should be the criteria in the evaluation of alternative production processes according to the given data? Answer: (type only one of the option number (1 or 2 or 3 or 4) to the box) 1. Expected profit per unit 2. Expected cost per unit 3. Expected profit and cost per unit 4. The process with the minimum variance should be selected b. Proportion of defectives (fraction of defectives eg. 0.321) for Process 1 is = C. Proportion of defectives for Process 2 is =

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

R1

The specifications on
cost per unit (the manufacturer pays the price plus $9 back for each defective unit).
electronic component in a target-acquisition system are that its life must be between 12264h and 18396h. The manufacturer realizes a price of $37 per unit produced. However, defective units will be returned with a $9 penalty
The manufacturer has two alternative production lines both have normally distributed life hours. Mean and standard deviation hours are given in the table below. Process 1 has a production cost of $ 0.15/unit. Production costs for process 2 are twice
those for Process 1.
(Hours)
Process 1
Process 2
Mean
15330
16863
Standard Deviation
3066
1533
Questions:
a. What should be the criteria in the evaluation of alternative production processes according to the given data? Answer:
(type only one of the option number (1 or 2 or 3 or 4) to the box)
1. Expected profit per unit
2. Expected cost per unit
3. Expected profit and cost per unit
4. The process with the minimum variance should be selected
b. Proportion of defectives (fraction of defectives eg. 0.321) for Process 1 is =
c. Proportion of defectives for Process 2 is =
d. Expected profit/unit for Process 1 is = $
e. Expected profit/unit for Process 2 is = $
Transcribed Image Text:The specifications on cost per unit (the manufacturer pays the price plus $9 back for each defective unit). electronic component in a target-acquisition system are that its life must be between 12264h and 18396h. The manufacturer realizes a price of $37 per unit produced. However, defective units will be returned with a $9 penalty The manufacturer has two alternative production lines both have normally distributed life hours. Mean and standard deviation hours are given in the table below. Process 1 has a production cost of $ 0.15/unit. Production costs for process 2 are twice those for Process 1. (Hours) Process 1 Process 2 Mean 15330 16863 Standard Deviation 3066 1533 Questions: a. What should be the criteria in the evaluation of alternative production processes according to the given data? Answer: (type only one of the option number (1 or 2 or 3 or 4) to the box) 1. Expected profit per unit 2. Expected cost per unit 3. Expected profit and cost per unit 4. The process with the minimum variance should be selected b. Proportion of defectives (fraction of defectives eg. 0.321) for Process 1 is = c. Proportion of defectives for Process 2 is = d. Expected profit/unit for Process 1 is = $ e. Expected profit/unit for Process 2 is = $
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Point Estimation, Limit Theorems, Approximations, and Bounds
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.
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