A manufacturer of computer chips has a computer hardware company as its largest

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

The average length and stanadard deviation of length of all chips manufactured in last month.

The chips produced do not meet the specification limit. The specification limit is beyond the upper bound of confidence interval.

The production manager can site that lower confidence interval could not hold the specification limit but at higher confidence interval the interval should contain specification requirement.

This decision is not going to affect the manufacturer's sales and profit as with ower sample size or with higher confidence interval, the production team is meeting the specification requirement.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.