Supplier A makes a part for Company G. The difference between the actual and desired length of a part is called D (measured in decimeters). D is negative if A makes the part too short (desired is longer than actual). Suppose D values are standard normal.
a. What is the probability a part will miss the desired length by more than 0.44 decimeters (too long or too short)?
b. Let C be the cost of a part for G. If the part is shorter than 0.44 decimeters, then the part must be returned for replacement. The overall cost of such a part is $25. If the part is too long by 0.44 decimeters or more, then the part can be shortened to meet standards. The overall cost for such a part is $20. If a part’s length is within 0.44 decimeters of the desired length, the quality of G’s product is unaffected. The cost of such parts is $10. Use your work in Part a and this information to represent the probability distribution of the random variable C.
C P(C) _
c. Find E(C). Interpret your result.