A manufacturer of computer chips has a computer hardware company as its largest
ID: 3021457 • Letter: A
Question
A manufacturer of computer chips has a computer hardware company as its largest customer. The computer hardware company requires all of its chips to meet specifications of 1.2 cm. The vice-president of manufacturing, concerned about a possible loss of sales, assigns his production manager the task of ensuring that chips are produced to meet the specification of 1.2 cm.
Based on the production run from last month, a 95% confidence interval was computed for the mean length of a computer chip resulting in:
95% confidence interval: (0.9 cm, 1.1 cm)
What are the elements that the production manager should consider in determining his company’s ability to produce chips that meet specifications?
Do the chips produced meet the desired specifications?
What reasons should the production manager provide to the vice-president to justify that the production team is meeting specifications?
How will this decision impact the chip manufacturer’s sales and net profit?
Explanation / Answer
What are the elements that the production manager should consider in determining his company’s ability to produce chips that meet specifications?
mean and standard deviation
Do the chips produced meet the desired specifications?
no, because as you can see in the confidence interval , the limits are between 0.9 and 1.1 , you can see that 1.2 is not in the interval
What reasons should the production manager provide to the vice-president to justify that the production team is meeting specifications?
the confidence interval is an inference that we can use to see if the mean of population is between the values of a confidence interval
How will this decision impact the chip manufacturer’s sales and net profit?
Returns, complaints, loss of money
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