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At Elproparts Manufacturers' integrated circuit business, managers gathered data from a customer focus group and found that any output voltage that exceeds 6 0 +

At Elproparts Manufacturers' integrated circuit
business, managers gathered data from a customer
focus group and found that any output voltage that
exceeds 60+-3.5 volts was unacceptable to the
customer. Exceeding these limits results in an esti-
mated loss of $90. However, the manufacturer can
still adjust the voltage in the plant using a quick
diagnostic test that costs $3.75.
a. Determine the Taguchi loss function.
b. Suppose the nominal specification remains at
60 volts. At what tolerance should the inte-
grated circuit be manufactured?
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