The average time to handle a call in the Call-Nowait call processing center has a specification of 6 ±1.25 minutes. The loss from a mishandled call is $12. A sample of 25 calls was drawn from the process and the results, in minutes, can be found in the worksheet tab Prob08-12 in the Excel file Ch08Data.xlsx.

a. Compute the value of k in the Taguchi loss function.

b. What is the expected loss from this process based on the sample data?

 

Call-Nowait handling time
Descriptive Statistics Using Excel Functions
	Data	Sorted data
1	6.5	4.3		Mean		6.0160
2	7.3	4.6		Median		6.2	By inspection of sorted data
3	5.5	4.7		Mode		5,5;6.2;6.5	By inspection of sorted data (tri-modal)
4	5.1	4.8
5	5.9	5.0		Range		3.1
6	6.0	5.1		Variance (pop.)		0.7701
7	6.6	5.5		Variance (sampl.)		0.8022
8	4.8	5.5		Stnd Dev (pop.)		0.8776
9	5.6	5.6		Stnd Dev (sampl.)		0.8957
10	7.1	5.9
11	6.5	6.0
12	6.2	6.1
13	7.2	6.2
14	7.4	6.2
15	4.6	6.3
16	5.0	6.4
17	4.3	6.5
18	6.9	6.5
19	6.1	6.6
20	4.7	6.7
21	5.5	6.9
22	6.7	7.1
23	6.4	7.2
24	6.3	7.3
25	6.2	7.4