Question: The specifications on an electronic component in atarget - acquisition system are that its life must bebetween 5 , 0 0 0 and 1 0

The specifications on an electronic component in atarget-acquisition system are that its life must bebetween 5,000 and 10,000 h. The life is normallydistributed with mean 7.500 h. The manufacturerrealizes a price of $10 per unit produced; however,defective units must be replaced at a cost of $5 tothe manufacturer. Two different manufacturingprocesses can be used, both of which have the samemean life. However, the standard deviation of lifefor process 1 is 1000 h, whereas for process 2 it isonly 500 h. Production costs for process 2 are twicethose for process 1. What value of production costswill determine the selection between processesand 2?

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