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3. Consider a normally distributed process that cuts steel panels with a “process center” of 12 inches and a standard deviation of .06 inches. The lower specification limit is 11.8 inches, and the upper specification limit is 12.15 inches.
a. Is the process capable of working within the spec limits? (keep 3 decimals)
b. In the process above, a piece of steel panel that is cut too short must be scrapped at a cost of $5.00. A piece of panel that is cut too long must be re-cut by hand at a cost of $3.00. The firm runs 250 pieces of steel panels through the machine per day. The machine can work 5 days per week, 52 weeks per year. What is the annual expected fixing cost of this process? (keep 2 decimals)
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