Question: Consider a drilling process (normally distributed) with a target hole length of 2.60 inches. The upper specification limit is 2.80 inches, and the lower specification
Consider a drilling process (normally distributed) with a target hole length of 2.60 inches. The upper specification limit is 2.80 inches, and the lower specification limit is 2.55 inches. The machine has a natural process variability of = 0.10 inches. Holes that are drilled too short cost $3.00 to fix, and holes that are drilled too long cost $10.00 to fix. If monthly production is 20,000 units, what is the expected fixing cost per month using this machine? (Please use the z-table in page 2.)
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