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 historic 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.

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