A product's quality characteristic has a specification (in inches) of 0.200 ± 0.020. If the value of the quality characteristic exceeds 0.200 by the tolerance of 0.020 on either side, the product will require a repair of $150. The Taguchi loss function for this example is given by:
a. L(x) = 60(x-T)2
b. L(x) = 150(x-T)
c. L(x) = 375,000(x-T)2
d. L(x) = 30(x-T)2
Answer: c.L(x) = 375,000(x-T)2