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Specifications for a critical part for a DVD player state that the part should weigh between 22 and 26 ounces. The process that produces the parts yields a mean of 24.5 ounces and a standard deviation of 0.85 ounce. The distribution of the weights of the part is normal.
a) What percentage of parts will meet the weight specifications?
b) If each production month 1,000,000 units of this part are produced at a cost of $50.00 per unit, what is the expected cost of the discarded units?
c) The DVD parts have a service life warranty of three years. The average life of the part is six years with.
d) Using the information in part C, give an estimate of the replacement cost due to product failure within the warranty period, if 1,000,000 units are sold. Assume that the cost per unit to produce the part is $50.
Hint: this is an application of the normal distribution.
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