Pandra Manufacturing obtained the following measurements on the quality characteristic of the product from its operations in the last few months:
The company has determined that no customer will accept any unit that deviates more than 0.04 from the target quality characteristic, T, of 0.5. The company estimated that each rejection would cost the company $500.
Required:
1. Calculate the cost coefficient, k, for the Taguchi Quality Loss Function based on the above information.
2. Determine the estimated amount of quality loss, L(x), for each of the observed values of the quality characteristic, x, presented in the above table.
3. Based on the data you generate in response to Requirement 1 above, determine the expected loss given the probabilities presented in the above table. Round your answer to three decimal places.
4. Use the formula EL(x) = k (σ2 + D2) to verify your answer in (2), where σ2 = Σ (x - )f(x), and D = the deviation of the mean value of the quality characteristic from the target value = (
- T).
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