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Heidelberg Manufacturing specifies the quality characteristic for one of its key components to be 174 4. The cost of failure is estimated to be $40,000
Heidelberg Manufacturing specifies the quality characteristic for one of its key components to be 174" 4. The cost of failure is estimated to be $40,000 per unit. Using the Taguchi Quality Loss Function (QLF) the firm has estimated the loss, L(x), at the quality characteristic that the firm has experienced, x, to be $22,500. What is the estimated loss (to the nearest dollar) if the deviation from the value of the quality characteristic doubled? (Do not round intermediate calculation.)
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