Life of aircraft component


The life of aircraft component is specified between 7500 and 12,000 hrs. The life is normally distributed with mean of 10,000 hrs. The price realized by manufacturer for each unit produced is $12. It costs the manufacturer $8 to replace the defective units. There are two different manufacturing processes, with the same mean life. The standard deviation for process 1 is 1200 hrs, and for process 2, it is only 700 hrs. Production cost for process 2 is twice that of process 1. What value of production costs will determine the selection between process 1 & 2?

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Basic Statistics: Life of aircraft component
Reference No:- TGS0871363

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