Question: Over the last few months, Ithaca Precision Instruments (IPI) obtained the following measurements on a key quality characteristic of its product: Observed Quality Characteristic Probability

Over the last few months, Ithaca Precision Instruments (IPI) obtained the following measurements on a key quality characteristic of its product:

Observed Quality Characteristic Probability
0.46 0.01
0.47 0.10
0.48 0.12
0.49 0.15
0.49 0.31
0.51 0.15
0.52 0.09
0.53 0.06
0.54 0.01

The company's experience has been that a customer will reject a product that deviates from the target quality characteristic of 0.50 by more than 0.040. Each rejection costs the firm an estimated $5.95. Determine the expected total quality loss of the observed quality characteristic for IPI. (Round intermediate and final answer of to 4 decimal places.)

A. 99.1188

B. 75,6813

C. 28,8063

D. 1.1937

E. 205.5687

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