Compute the capability indices for firms

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An appliance manufacturer wants to contract with a repair shop to handle authorized repairs in Indianapolis. The company has set an acceptable range of repair time of 53.00 minutes to 86.00 minutes. Two firms have submitted bids for the work. In test trials, Firm A had a mean repair time of 68.00 minutes with a standard deviation of 4.00 minutes; and the other firm, Firm B, had a mean repair time of 69.00 minutes with a standard deviation of 4.50 minutes.

Compute the following capability indices for both firms:
Capability Index
FIRM A
FIRM B
Lower:
[a]
[b]
Upper:
[c]
[d]
Process:
[e]
[f]

Given the minimum threshold value of 1.50 for process capability, which firm would you choose? (Enter "FIRM A", "FIRM B" or "NONE"): [g]

NOTE: All values should be rounded to the nearest hundredth (two decimal after dot, for example 9.99)

Reference no: EM132715798

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