Managing for Quality and Performance Excellence 10th Edition by James Evans ,William Lindsay

Exercise 66

Note: Data sets for several problems are available in the Excel workbook C07Data in the Student Companion Site for this chapter. Click on the appropriate worksheet tab as noted in the problem (e.g., Prob. 7-5, etc.) to access the data.
An electronic component at Ampcomp has a specification of 100 ± 0.4 ohms. Scrapping the component results in a $81 loss.
a. What is the value of k in the Taguchi loss function?
b. If the process at Ampcomp averages 99.75 ohms with a standard deviation of 0.2 ohm, what is the expected loss per unit?