Assume that a plasma TV company is working at a three-sigma level of quality in terms of

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Assume that a plasma TV company is working at a three-sigma level of quality in terms of each of 100 component parts in each TV it manufactures. Because of the high price associated with these TV sets, the company defines a product defect as any unit with one or more defective components. (That is, a good-quality output is defined as a TV set with zero defective parts.) On average, what is the probability of producing a unit with zero defects? (Show calculations.)


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Cost management a strategic approach

ISBN: 978-0073526942

5th edition

Authors: Edward J. Blocher, David E. Stout, Gary Cokins

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