The ranges of the diameter of the wheels that the company manufactures can be calculated by adding or subtracting the given tolerance from the desired diameter. The lower limit is calculated by subtracting the allowance while the upper limit is obtained by adding the allowance.
lower limit = 70 cm - 0.02 cm = 6.98 cm
upper limit = 70 cm + 0.02 cm = 70.02 cm
The absolute value equation for this scenario is,
0.02 = I70 - xI