# Question: An elevator rail is assumed to meet specifications if its

An elevator rail is assumed to meet specifications if its diameter is between 0.98 and 1.01 inches. Each year a company produces 100,000 elevator rails. For a cost of $10/σ2 per year the company can rent a machine that produces elevator rails whose diameters have a standard deviation of σ. Each such machine will produce rails having a mean diameter of one inch. Any rail that does not meet specifications must be reworked at a cost of $12. Assume that the diameter of an elevator rail follows a normal distribution.

a. What standard deviation (within 0.001 inch) minimizes the annual cost of producing elevator rails? You do not need to try standard deviations in excess of 0.02 inch.

b. For your answer in part a, one elevator rail in 1000 will be at least how many inches in diameter?

a. What standard deviation (within 0.001 inch) minimizes the annual cost of producing elevator rails? You do not need to try standard deviations in excess of 0.02 inch.

b. For your answer in part a, one elevator rail in 1000 will be at least how many inches in diameter?

**View Solution:**## Answer to relevant Questions

Many states supplement their tax revenues with state-sponsored lotteries. Most of them do so with a game called lotto. Although there are various versions of this game, they are all basically as follows. People purchase ...In the SciTools example, use a two-way data table to see how (or whether) the optimal decision changes as the bid cost and the company’s production cost change simultaneously. Let the bid cost vary from $2000 to $8000 in ...In a tree built with Precision Tree, there are two blue values at each end node, the top one of which is a probability. Why are so many of these probabilities 0 in the finished tree in Figure 6.9? What do the remaining ...Referring to the previous problem, find the same probabilities through the counting argument explained in this section. Start with 100,000 athletes and divide them into the various categories.a. What is the posterior ...In the Acme problem, perform a sensitivity analysis on the quantity sold from a great national market (the value in cell B11). Let this value vary over a range of values greater than the current value of 600, so that a great ...Post your question