1. A quality characteristic has a design specification (in cm) of 0.200 plusminus 0.020. If the actual process value of the quality characteristic is at the boundary of the tolerance on either side, the product will require a repair of $40. Find the value of k, and state the Taguchi loss function. What is the economic loss associated with x = 0.215?
2. For the situation in problem 3, what are the economic design specifications if the cost of inspection and adjustment is $7.50?