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

Exercise 50

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.
The average time to handle a call in the Call-Nowait call processing center has a specification of 5.9 ± 1.15 minutes. The loss due to a mishandled call is $15. A sample of 25 calls was drawn from the process and the results, in minutes, can be found in the C07Data file for Prob. 7-17.
a. Compute the value of k in the Taguchi loss function.
b. What is the expected loss from this process based on the sample data?