Solving probability theory questions

Reference no: EM1398873

Grindit & Floggit Ltd. make customized Widgets at a cost of $150 per unit of which 3% (on average) happen to be out of tolerance. Up to 115 Widgets can be produces in one continuous run whose set up incurs an additional cost of $10 000. Since manufacturing runs are set to produce one of many variants of Widget, Grindit & Floggit estimate that Widgets made in excess of a firm order have no residual value. All Widgets are tested to see if they are within tolerance only after a manufacturing run has been complete.

Grindit & Floggit receive an order for 100 Widgets

a) What is the chance to fulfill the order by producing exactly 100 Widgets?

b) What is the chance to fulfill the order by producing 105 Widgets?

c) How many Widgets should be produced to fulfill the order with less than 5% risk?

d) What is the cost of production of each of 100 resulting Widgets in the last case? What price do you think Grindit & Floggit should be charging the customer per Widget in the last case if they want to make 10% profit (round to nearest penny)?

Reference no: EM1398873

Questions Cloud

Illustrate what role do small businesses play in economy : Illustrate what role do small businesses play in the economy with regards to employment, taxes, community stability, etc. and illustrate what are the factors that impact their success?

Integrity constraint prevent-data inserted in table : Integrity constraint prevent from happening when data is inserted in table which contains this constraint? Let INSERT, UPDATE, and DELETE actions on both child and the parent.

Significant difference in means between two groups : what is the appropriate procedure to test for significant difference in means between two groups? Implement the procedure using the critical-value method and what is the p-value?

Explain why in order to connect with the egyptian market : Make sure that you comprise a Title and Reference page. Address the following Explain the cultural differences and illustrate what you would need to adapt to and explain why in order to connect with the Egyptian market.

Solving probability theory questions : Grindit & Floggit Ltd. make customized Widgets at a cost of $150 per unit of which 3% (on average) happen to be out of tolerance. Up to 115 Widgets can be produces in one continuous run whose set up incurs an additional cost of $10 000.

Find an organism that is introduced into a new environment : When conducting an experiment, it is important to have the experimental and control groups as close to each other as possible at the start of the experment. In the Keystone Predator simulation, what would you click on to make sure that each group ..

Explain how can you make a product better : Which is the better product, illustrate what you get at a technical college or illustrate what you get at a university or state college? Explain how can you make a product better?

Two-factor analysis of variance experiment : A statistics practitioner conducted a two-factor analysis of variance experiment with a =4, b = 3, and r = 8. The sum of squares are listed here:

Chebyshev theorem-other statistic rules : Use Chebyshev's theorem to find what percent of the values will fall between 162 and 292 for a data set with a mean of 227 and standard deviation of 13.

User Account

All Pages