North Platt Machinery Company manufactures a shaft that must fitinside a sleeve. The firm has just received an order of 51,000units from Southernstar Exploration Company for $38 per unit. NorthPlatt can manufacture the shaft at $8 per unit. Southernstardesires the diameter of the shaft to be 1.276 cm. The diameter ofthe shaft must not be less than 1.251 cm in order to fit properlyinside the sleeve. To be able to insert the shaft into a sleevewithout the use of force, the diameter cannot be larger than 1.301cm. A defective shaft is discarded and a replacement has to beshipped via express freight to locations around the world. NorthPlatt estimates that the average cost of handling and shipping areplacement shaft will be approximately $28. Shown below are thediameters from a sample of 100 shafts manufactured during a trialrun:

Diameter	Number of Units	Diameter	Number of Units			Diameter	Number of Units
1.233	2	1.274		7		1.293	3
1.241	3	1.275		8		1.294	2
1.251	4	1.276		20		1.295	5
1.259	3	1.277		9		1.299	3
1.263	3	1.278		4		1.301	3
1.271	4	1.281		3		1.305	2
1.273	7	1.289		3		1.321	2

Last column of diameters, no of units are 3,2,5,3,3,2,2

Required:

Set up an Excel spreadsheet that uses a Taguchi quality lossfunction to determine:

1. The expected loss (total quality cost) per unit,E[L(x)], from this process. (Donot round intermediate calculations. Round your answer to 2 decimalplaces.)

2. The diameter tolerance that should be set for the manufactureof the shaft. (Do not round intermediate calculations.Round your answer to 4 decimal places.)