Question: The specifications on an electronic component in a target-acquisition system are that its life must be between 5,000 and 10,000 h. The life is normally
The specifications on an electronic component in a target-acquisition system are that its life must be between 5,000 and 10,000 h. The life is normally distributed with mean 7,500 h. The manufacturer realizes a price of $10 per unit produced; however, the penalty cost of defective units is 24 per unit. Two different manufacturing processes can be used, both of which have the same mean life.
However, the standard deviation of life for process 1 is 1000 h, whereas for process 2 it is only 500 h. Production costs Process 1 is $ 3.8 /unit. Production costs for Process 2 is $ 7.4 /unit.
Find the fraction nonconforming of each process. Fraction nonconforming(Process 1)= Fraction nonconforming(Process 2)=
Find the expected profits of each process when 80000 units manufactured and sold. Profit(Process 1)= $ Profit(Process 2)= $
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