Refer to the information in 17-34. What is the expected loss (cost) per unit if the manufacturing process is centered on the target specification with a standard deviation of 2?
In 17-34, Solidtronic, Inc., an OEM manufacturer, has a product specification of 75 + / – 5. The cost for warranty services is estimated as $500 per unit. What is the value of k, the cost coefficient, in the Taguchi loss function?