What proportion of bindings are out of spec?Originally Posted by Samyeo
In spec bindings are within standard deviations of the mean this
includes (looking this up in a table of the standard normal distribution)
of bindings made, so are out of spec.
a) If parts are started the expected number in spec is:
So the company will have to start (rounding up).
b) Cost to start is
so the cost to start the rejects is , and the
return on them is: so the cost of these failures