Problem
Specifications for a critical part for a DVD player state that the part should weigh between 22 and 26 ounces. The process that produces the parts yields a mean of 24.5 ounces and a standard deviation of 0.85 ounce. The distribution of the weights of the part is normal.
If the production process for this part is redesigned, and the variation inherent in the process is reduced, this redesing will result in:
I: less discarded parts, II: More discarded parts, III: No change in expected number of discarded parts
What percentage of the units that was be produced by this process was discarded (defective)?
If 20,000 units produced are defective, given a production cost per unit of $50, how much will be the total cost associated with producing the defective units?