The specification for the length of an iron tube is 780mm +/- 1 mm. The manufact

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The specification for the length of an iron tube is 780mm +/- 1 mm. The manufacturing process that produces the tubes is centered at 780 mm and has a standard deviation of .80 mm. The process is in control and the process output is normally distributed. Tubes that fail to meet the lower specification limit are scrapped at a loss of $12 per tube. Tubes that exceed the upper specification limit are reworked at a cost of $4.50 per tube. Determine the expected monetary loss due to nonconforming tubes in a production run of 1,500 tubes. Assume that all process parameters remain as previously described during the production run.

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