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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.

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?
    • 9 years ago
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