Question: 1. It costs $50 to repair a component in a VCR. Compute the QLF for losses incurred as a result of a deviation from a target setting with a nominal tolerance of 10 $ 0.25 mm required. The mean squared deviation is 1/2.
2. It costs $350 to repair a refrigerator compressor. Compute the QLF for losses incurred as a result of a deviation from a target setting with a nominal tolerance of 60 amps, where a 2-amp variation is acceptable. The mean squared deviation is 1/5.