Managing for Quality and Performance Excellence 9th Edition by James Evans,William Lindsay

Exercise 46

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.
A computer chip designed by the MicroKeeb Co. has a specification for the distance between two adjacent pins of 2.000 ± 0.002 mm. The loss due to a defective chip is $4. A sample of 25 chips was drawn from the production process and the results, in millimeters, can be found in the worksheet tab Prob. 7-13 in the Excel file C07Data file.
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?