A Critical Part Has a Manufacturing Specification (In Cm) of 0.325

Multiple Choice

A critical part has a manufacturing specification (in cm) of 0.325 ± 0.010. Based on this information, if this measurement is larger than 0.335 or smaller than 0.315, the product fails at a cost of $120. Determine the Taguchi loss function in the given scenario.

A) L(x) = 1,200,000 (x - 0.335) 2
B) L(x) = 1,200,000 (x - 0.325) 2
C) L(x) = 1,200 (x - 0.315) 2
D) L(x) = 1,200 (x - 0.010) 2