During your design of a product, Taguchi loss equation is used to understand financial loss due to deviation from your target specification. Your target specification is 25 mm where deviation range is + or - 1mm. At boundary values of deviations, it costs you about $100 for each repair. Find out the value of k and estimate the value of financial loss when you deviate 0.5mm from your target value.

k=100, L(0.5mm) = $25.

k=50, L(0.5mm) = $12.5.

k=65, L(0.5mm) = $65.

k=1, L(0.5mm) = $0.25.

k=25, L(0.5mm) = $6.25.