5-2 Scenario Analysis: Computer Chips

 

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5-2 Scenario Analysis: Computer Chips

A manufacturer of computer chips has a computer hardware company as its largest customer. The computer hardware company requires all of its chips to meet specifications of 1.2 cm. The vice-president of manufacturing, concerned about a possible loss of sales, assigns his production manager the task of ensuring that chips are produced to meet the specification of 1.2 cm.

5-2 Scenario Analysis: Computer Chips

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?

5-2 Scenario Analysis: Computer Chips

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?
I need 2 full pages of analysis on this question 5-2. I attached the guideline for this with the email..

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