Question: A quality characteristic of a product is normally distributed with

A quality characteristic of a product is normally distributed with mean µ and standard deviation . Specifications on the characteristic are 6 x 8. A unit that falls within specifications on this quality characteristic results in a profit of C0. However, if x < 6 the profit is –C1, whereas if x > 8, the profit is –C2. Find the value of that maximizes the expected profit.

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  • CreatedNovember 06, 2015
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