Question: 6 . The NPS Corp has a contract with the Navy to deliver 1 , 0 0 0 fuel pumps for the J - 5
The NPS Corp has a contract with the Navy to deliver fuel pumps for the J engines used in A A EA Navy and Marine aircraft The lifetime of the pump follows a normal distribution with mu years, and sigma years. The warranty covers the first twoyear failures and the company will repair the faulty pumps free of charge. Each repair costs the company an average of $ The company has two options to improve the process. Which is the preferred option and what is the maximum that company willing to invest to implement that option?
Option : increase the mean by year iemu sigma
Option : decrease the standard deviation by year iemu sigma
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