A manufacturer of a certain product can expect

AMURE ADENIYI BOLAJI COLLINS

. 003 (20000) TO .005(20000) = 150000 T0 250000

Nov 1, 2016 • Comment

Jeffrey Braganza

0.3 % to 0.5% of 20,000 units are going to be defective
2500$/unit

Find out how many units are defective:
10% of 20,000 = 2000
Similarly,
1% = 200
0.5% = 100
0.1% = 20
0.3% of 60

Range of defective good: 60 to 100
Cost to cover refunds: (60 * 2500) to (100 * 2500) = $150,000 to $250,000

Dec 31, 2015 • Comment