Plants Satisfying Demand
The population of lengths of aluminum-coated steel sheets is normal distributed with a mean of 30.05 inches
July 9, 2019Standard Deviation vs. Population Standard Deviation
July 9, 2019You have been offered a position as General Manager of a television manufacturing facility by XYZ Corporation. You have a choice of Plant A or Plant B. At the present time both plants are satisfying their demand for a particular TV (Model FX32) by providing 3200 sets per day on the average.
-However, Plant A has a standard deviationof 50 Model FX32’s per day while Plant B has a standard deviation of 150 Model FX32’s per day.
-Which of these plants would you prefer to manage?
Hello,
As a rule of thumb, the smaller the standard deviation, the less errors occur, and the more predictable the results. The higher the standard deviation, the more unpredictable the results.
So …
The solution examines plants satisfying demand. The expert determines which of the plants they would prefer to manage.
