The quality loss function is based on the premise that:

Group of answer choices

All products exhibit a quality loss, even those that hit the target.

There is never any 'quality loss' as long as a product falls within specification limits$.$

A product that lies just inside a specification limit is definitely very good $($exhibiting no quality loss$)$; a product that lies just outside that same specification limit is definitely very bad $($exhibiting a high quality loss$).$

Unless a product exactly hits the target, it creates a negative consequence of some magnitude $($a very minor magnitude if only slightly off target; a major magnitude if significantly off target$).$