Alpha Corporation is considering two suppliers to secure the large amounts of steel rods that it uses.

Question:

Alpha Corporation is considering two suppliers to secure the large amounts of steel rods that it uses. Company A produces rods with a mean diameter of 8 mm and a standard deviation of .15 mm and sells 10,000 rods for $400. Company B produces rods with a mean diameter of 8 mm and a standard deviation of .12 mm and sells 10,000 rods for $460. A rod is usable only if its diameter is between 7.8 mm and 8.2 mm. Assume that the diameters of the rods produced by each company have a normal distribution. Which of the two companies should Alpha Corporation use as a supplier? Justify your answer with appropriate calculations. Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: