Question

An appliance manufacturer wants to contract with a repair shop to handle authorized repairs in Indianapolis. The company has set an
acceptable range of repair time of 50 minutes to 90 minutes. Two firms have submitted bids for the work. In test trials, one firm had a
mean repair time of 74 minutes with a standard deviation of 4.0 minutes and the other firm had a mean repair time of 72 minutes with a
standard deviation of 5.1 minutes. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Firm Cpk

1 ___
2 ___

Which firm would you choose?

Firm 1
Firm 2
None

Answer 1

The best firm for the Appliance manufacturer for the repair work is Firm 2 .

In the question ,

it is given that ,

An appliance manufacturer wants to contract with a repair shop to handle authorized repairs in Indianapolis .

The acceptable range of the repair time is 50 minutes to 90 minutes.

the mean repair time for firm 1 = 74 minutes and standard deviation of 4 minutes .

the mean repair time for firm 2 = 72 minutes and standard deviation of 5.1 minutes .

the range is calculated using the formula

Range = Mean ± Standard Deviation

So , for firm 1 ,

the Range = 74 ± 4

= 74 $+$ 4       and      74 - 4

= 78     and   70

the range for firm 2 is

= 72 ± 5.1

= 72 $+$ 5.1      and      72 - 5.1

= 7.1        and       66.9  

The second company has a lower range and it should be preferred .

Therefore ,  The best firm for the Appliance manufacturer for the repair work is Firm 2 .

Learn more about Standard Deviation here

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