Question: The specifications on an electronic component in a target - acquisition system are that its life mustbe between 5 0 0 0 and 1 0

The specifications on an electronic component in a target-acquisition system are that its life mustbe between 5000 and 10,000 h. The life is normally distributed with mean 7500 h. Themanufacturer realizes a price of $10 per unit produced; however, defective units are attributed toa fault in the raw materials, and the supplier must compensate the manufacturer by a cost of $5 perdefective unit. Two different manufacturing processes can be used, both of which have the samemean life. However, the standard deviation of life for process 1 is 1000 h, whereas for process 2 itis only 500 h. Production costs for process 2 are twice those for process 1. What value ofproduction costs will determine the selection between processes 1 and 2?

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