Meena Chavan Corp.'s computer chip production process yields DRAM chips with an average life of 2,000 hours and sigma = 120 hours. The tolerance upper and lower specification limits are 2, 600 hours and 1,700 hours, respectively. Based on the given information, the process capability ratio Cp = ?

The correct answer is 1.25.

Explanation:

According to the scenario, the given data are as follows:

Upper specific limit = 2,600 hours

Lower specific limit = 1,700 hour

Standard deviation = 120 hours

So, we can calculate the capability ratio by using following formula:

CP = (Upper specific limit - Lower specific limit) : (6 * deviation)

= (2,600 hours - 1,700 hours) : (6 * 120)

= 900 hours : 720

= 1.25