QSO 510 5-2 Scenario Analysis Computer Chips Your Name Southern New Hampshire University QSO 510: Quantitative Analysis for Decision Making Due Date 02:17:47 GMT -05:00 QSO 510 5-2 Scenario Analysis Computer Chips Remember to indent the first line of a paragraph (use the tab key) or paragra...
QSO 510: Quantitative Analysis for Decision Making
Due Date
02:17:47 GMT -05:00
, QSO 510 5-2 Scenario Analysis Computer Chips
Remember to indent the first line of a paragraph (use the tab key) or paragraph formatting
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5-2 Scenario Analysis: Computer Chips
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)
1. What are the elements that the production manager should consider in determining his
company's ability to produce chips that meet specifications?
2. Do the chips produced meet the desired specifications?
3. What reasons should the production manager provide to the vice-president to justify that
the production team is meeting specifications?
4. How will this decision impact the chip manufacturer's sales and net profit?
02:17:47 GMT -05:00
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