Question

A supplier of machined parts has got an order to supply piston rods to a big car manufacturer. The client has specified that the rod diameter should lie between 2.51 and 2.49 cms. Accordingly, the supplier has been looking for the right kind of machine. He has identified two machines, both of which can produce a mean diameter of 2.50 cms. Like any other machine, these machines are also not perfect. The standard deviations of the diameters produced from the machine 1 and 2 are 0.01 and 0.02 cm, respectively, i.e. machine 1 is better than machine 2. This is reflected in the prices of the machines, and machine 1 costs Rs. 2,0 lakhs more than machine 2. The supplier is confident of making a profit of Rs. 200 per piston rod form the client. However, a rod rejected rod will be sold in the open market for a profit of Rs. 20. Help the supplier to take a better decision. The diameter produced by machines are normally distributed ​

Answer 1

Answer:

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