Based on the production run from last month a 95 confidence

Based on the production run from last month, a 95% confidence interval was computed for the mean length of a computer chip resulting in: 95% confidence interval: (0.9 cm, 1.1 cm) 1. What are the elements that the production manager should consider in determining his company’s ability to produce chips that meet specifications? 2. Do the chips produced meet the desired specifications? 3. What reasons should the production manager provide to the vice-president to justify that the production team is meeting specifications? 4. How will this decision impact the chip manufacturer’s sales and net profit?

Solution

a)
The chips produced do not meet the required specification 95% confidence interval is of 0.9cm to 1.1cm while the chip requirement is of 1.2cm, indicating that there is a 95% certainty that most of the chips are below the required specification.
b)
We don\'t have the specfication listed , if the required lies in the interval we colud say yes, it meets the specfications
c)
The reasons that the production manager can provide to justify that the production team is meeting specifications is presentation of the rectification steps that should be implemented to correct the mismatch between the specification and the actual production. This decision will impact the chip manufacturer’s sales and net profit positively by supplying the required product.