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HONDA Company is searching for suppliers for the components of their large machi

ID: 3061746 • Letter: H

Question

HONDA Company is searching for suppliers for the components of their large machines. They need Bolts that exceed a breaking strength of 12,000psi. Two suppliers A and B, offer this type of Bolt. Both have bolts with a breaking strength that is normally distributed. The breaking strength of Bolts for supplier B is 15,000psi and for A is 16,000psi. The standard deviations are 1500psi and 1700psi respectively. Which supplier will produce, on the average, the fewer number of off-specs bolts? (15pts)

Explanation / Answer

For supplier A

P(X < 12000)

= P((X - mean)/sd < (12000 - mean)/sd)

= P(Z < (12000 - 16000)/1700)

= P(Z < -2.35)

= 0.0094

For supplier B

P(X < 12000)

= P((X - mean)/sd < (12000 - mean)/sd)

= P(Z < (12000 - 15000)/1500)

= P(Z < -2)

= 0.0228

As the probability for supplier A is less, so it will produce, on the average, the fewer number of off-specs bolts.