Question: For a bottle - filling process, if the fixing cost of an underfilled bottle is $ 0 . 7 7 0 . 7 7 ,

For abottle-filling process, if the fixing cost of an underfilled bottle is
$0.770.77,
and the fixing cost of an overfilled bottle is
$0.190.19.
Which of the following statement would be most likely to minimize expected fixingcosts?
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Part 1
A.
The machine should be calibrated at the midpoint between the upper and lower spec limits.
B.
The machine should be calibrated closer to the lower spec limit than the upper spec limit.
C.
The machine should be calibrated closer to the upper spec limit than the lower spec limit.
D.
None of the above.

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