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

Exercise 15

The average time to handle a call in the Call- Nowait call processing center has a specification of 6 ± 1.25 minutes. The loss due to a mishandled call is $12. 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?