Do the chips produced meet the desired specifications?

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)

What are the elements that the production manager should consider in determining his company’s ability to produce chips that meet specifications?

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Do the chips produced meet the desired specifications?

What reasons should the production manager provide to the vice-president to justify that the production team is meeting specifications?

How will this decision impact the chip manufacturer’s sales and net profit?

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