The Quality manager for ABC Corporation is responsible for controlling the production output to reduce the...

The Quality manager for ABC Corporation is responsible for controlling the production output to reduce the chance that defective products are sent to customers. The manager is considering the purchase of automated machines that will scan each finished item and mark each as acceptable or defective. Previous test runs with the machines vs manual examination have given results shown in the following Classification Confusion Matrix.

	Predicted (according to machine)
Actual (from manual exam)	Acceptable	Defective
Acceptable	1543	98
Defective	522	892

overall error rate	20.3%
class 0 error rate	36.9%
class 1 error rate	5.97%

* Describe the potential costs of a Class 0 error vs a Class 1 error for this scenario.

** Describe the costs of each type of error in this scenario.

*** Which type of error would be more harmful to the company?

Please help answer the * questions. I am not sure what type of answer is wanted and there is no guidance in this subject in my textbook. Time is of the essence. Thanks for answering!

Expert Solution

orchestra answered 2 years ago

COST & PRODUCTION FUNCTIONS In order to reduce unit cost, the CEO of ABC Corporation has...

COST & PRODUCTION FUNCTIONS In order to reduce unit cost, the CEO of ABC Corporation has to decide whether to increase or decrease total production. A marketing analyst has reported the following information about ABC Corporation’s cost and production structure: Year Total Cost (TC) ($1000) Quantity Produced (Q) (Unit) 2018 2 10 2019 4 15 2020 6 35 1.Use Ordinary Least Squares Method (OLS) to estimate the ABC Corporation’s total cost function; that is, TC =β +βQ; 2. What is...

As a quality control manager, you are responsible for checking the quality level of AC adapters...

As a quality control manager, you are responsible for checking the quality level of AC adapters for tablet PCs that your company manufactures. You must reject a shipment if you find 5 defective units. Suppose a shipment of 46 AC adapters has 12 defective units and 34 non defective units. Complete parts (a) through (d) below assuming you sample 15 AC adapters. a) What is the probability that there will be no defective units in the shipment? b) What is...

As a shift manager at a local fast food place, you are responsible for ensuring quality...

As a shift manager at a local fast food place, you are responsible for ensuring quality control. You do not want to weigh all the frozen hamburger patties that get delivered by your supplier to make sure they weigh four ounces on average, so you choose 25 patties at random. You calculate that the sample mean weight of patties is 3.4 ounces and the standard deviation of the weight of hamburger patties to be 0.5 ounces. (a) Test the hypothesis...

what is the system responsible for controlling minute ventilation?

The owner of ABC Corporation decides to hire Jack as the manager. The profit of ABC...

The owner of ABC Corporation decides to hire Jack as the manager. The profit of ABC primarily depends on how much effort Jack puts on the management, as follows: Probabilities $10,000 $90,000 Low effort 70% 30% High effort 10% 90% Jack thinks choosing “low effort” is costless and choosing “high effort” costs him $2,000. The owner cannot observe which effort level that Jack chooses. How can the owner do to induce Jack to choose “high effort”?

Companies are continuously seeking ways to improve the quality of production and reduce costs. One of...

Companies are continuously seeking ways to improve the quality of production and reduce costs. One of the areas is to work with suppliers to improve the quality and reliability of parts and products shipped. In an article entitled "In Defense of Activity-Based Cost Management," Robert S. Kaplan says: An ABC model can play a major role in improving supplier relationships as well. These relationships must be a vital part of any quality and cycle-time improvement program. A key insight is...

As a quality control manager, you are responsible for checking the quality level of AC adapters for tablet PCs that your company manufactures.

As a quality control manager, you are responsible for checking the quality level of AC adapters for tablet PCs that your company manufactures. You must reject a shipment if you find 55 defective units. Suppose a shipment of 45 AC adapters has 12 defective units and 33nondefective units. Complete parts (a) through (d) below assuming you sample 11 AC adapters What is the probability that there will be no defective units in the shipment? b. What is the probability that...

From the following information on costs of production of the ABC corporation, calculate

From the following information on costs of production of the ABC corporation, calculate a) Total Fixed Cost (TFC), Total Varibale Cost (TVC), Average Fixed Cost (AFC), Average Variable Cost (AVC), Average Total Cost (ATC), and Marginal Cost (MC).Quantity ProducedTotal CostTotal Fixed Cost (TFC)Total Variable Cost (TVC)Average Fixed Cost (AFC)Average Variable Cost (AVC)Average Total Cost (ATC)Marginal Cost (MC)0$120$120----1135$135214974.5316254417443.5518837.6620434722432824730.9927530.5Graph the average fixed cost (AFC), average variable cost (AVC), average total cost ATC), and the marginal cost (MC) curves on one graph and...

ABC Corporation is a service company that measures its output based on the number of customers...

ABC Corporation is a service company that measures its output based on the number of customers served. The company provided the following fixed and variable cost estimates that it uses for budgeting purposes: Fixed amount per month Variable amount per customer Revenue $5,000 Payroll cost $50,000 $1,100 Travel expenses $600 Admin expenses $36,000 $500 Other expenses $10,000 $200 When preparing its planning budget, the company estimated that it would serve 60 customers per month; however, during April the company actually...

As a production manager of Chifwamba enterprise, you are given the following output, price and total...

As a production manager of Chifwamba enterprise, you are given the following output, price and total cost data facing a firm. Output Total Cost Price Fixed Cost (FC) Variable Cost (VC) Marginal Cost (MC) Average Fixed Cost (AFC) Average Variable Cost (AVC) Marginal Revenue (MR) Total Revenue (TR) Total Economic Profit 0 50 134 1 100 132 2 128 130 3 148 128 4 162 126 5 180 124 6 200 122 7 225 120 8 254 118 9 292...

Question