Toledo Tire Company recently bought a new compressor which automatically fills automotive tires to specified pressure. It

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Toledo Tire Company recently bought a new compressor which automatically fills automotive tires to specified pressure. It was specified by the compressor manufacturer that standard deviation for the fillings was 2 PSI. For getting best fuel economy, it is suggested the tire pressures should be set in the range 30 to 35 PSI. Since under-inflation is lot more undesirable than over inflation, the manager set the compressor to fill the tires at an average pressure of 33.0 PSI. Answer the following questions-

1. What is the process capability of the system for filling tires?

2. What proportion of tires can be expected to be under inflated?

3. What proportion of tires can be expected to be over inflated?

4. What can the manager do to increase the proportion of properly inflated tires?

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Related Book For  book-img-for-question

Corporate Finance

ISBN: 978-0071339575

7th Canadian Edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Gordon Ro

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