Business, 23.03.2020 16:29 bumpydumper

A manufacturer of magnetic tapes is interested in reducing the variability of the thickness of the coating on the tape. It is estimated that the loss to the consumer is $10 per reel if the thickness exceeds 0.005 ± 0.0004 mm. Each reel has 200 m of tape. A random sample of 10 yields the following thickness (in millimeters): 0.0048, 0.0053, 0.0051, 0.0051, 0.0052, 0.0049, 0.0051, 0.0047, 0.0054, and 0.0052. Find the average loss per reel. (Use X bar = 0.00507, s = 0.00023)

The manufacturer is considering adopting a new process to reduce the variability in the thickness of coating. It is estimated that the additional cost for this improvement is $0.03 per linear meter. The annual production is 10,000 reels. Each reel has 200 m of tape. A random sample of size 8 from the new process yielded the following thickness (in millimeters): 0.0051, 0.0048, 0.0049, 0.0052, 0.0052, 0.0051, 0.0050, and 0.0049. Is it cost effective to use the new process? What is the annual savings or loss? (Use x bar = 0.00503, s = 0.00015)

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