Types of sampling risks, Project Management

Assignment Help:

Types of Sampling Risks

A guarantee that every defective item in a lot would be found cannot be stated by neither sampling nor 100% inspection, 100% inspection has the risk of monotony and other factors that will result in the inspectors missing some of the defectives. Both the risks can be quantified.

Sampling risks are of two types:

  • Good lots can be rejected (the producer's risk) this risk corresponds to α-risk. The producer here is also known as Supplier alternatively.
  • Bad lots can be accepted (the consumer's risk). This risk corresponds to β- risk.

The supplier's risk is the risk that corresponds to a batch of high quality products and is being rejected due to the risks involved. The consumer risk is the risk that a batch of low quality products would be accepted.

The method of making decisions using experimental data is called as statistical hypothesis test. Hypothesis test often confuses people but is the key factor of most statistical applications. Statistical tests split significant effects form mere luck or random chance. All hypothesis tests have unavoidable, risks of making the incorrect conclusion. They always involve Type I (producer's or α) and Type II (consumer's or β) risk. The Type risk is the chance of confirming that a major effect is present when it isn't. The Type II risk is the chance of not detecting a major effect when one exists. The figure explains the types of risks in detail:

1953_sampling risk.png

Figure : Types of sampling risks

α-risks: in case of statistical testing, the significance level, Type I risk, or also called as α-risk is the "reasonable doubt".  It is the chance of wrongly rejecting the quality when it is appropriate.  In case of acceptance testing, it is the producer's risk or risk of rejecting a lot that meets requirements.

β - risks: In case of statistical testing, the Type II risk, is also called as β-risk. The Type II risk is the chance of accepting the quality when it is inappropriate. The "consumer's risk" is the Type II risk for an acceptance sampling plan. It is the chance of passing a lot that does not meeting the requirements.


Related Discussions:- Types of sampling risks

What are the uses of cost benefit analysis, What are the uses of Cost Benef...

What are the uses of Cost Benefit Analysis? Generally, this technique (complex cost benefit analysis) is advocated for use within decisions on public projects, wherein social c

Describe who should carry out an investigation, Question: (a) An emplo...

Question: (a) An employee in an organisation has suffered a major injury in an accident during working hours. Describe who should carry out an investigation into the accident

Explain about the economic order quantity and total cost, Explain about the...

Explain about the Economic Order Quantity and Total Cost with diagram. Economic Order Quantity and Total Cost: The total of Inventory procurement cost and also inventory carryi

Stakeholder management, 3. What are some ways to manage a stakeholder rela...

3. What are some ways to manage a stakeholder relationship closely? Give examples of how you might manage relationships differently based on the unique personalities of different

Pm, short note on partnering

short note on partnering

Case study, two boss problem case study

two boss problem case study

What is the purpose of the post completion review, What is the purpose of t...

What is the purpose of the post completion review? The purpose of a PC (post completion) review: • Assist continuous improvement for example review procedures to design bett

How to measures defect removal efficiency for the product, Number of post-r...

Number of post-release defects (found by clients in field operation), categorized by level of severity Ratio of defects found internally prior to release (by inspections and tes

Report and presentation, I want report on this article in 1500 words and pr...

I want report on this article in 1500 words and presentation my article is Huber, M., Van Boven, L., McGraw, A.P. and Johnson-Graham, L. 2011. Whom to help? Immediacy bias in judge

Advantages of product layout - low work in progress, Advantages of Product ...

Advantages of Product Layout - Low Work in Progress Since production is carried on in a pre arranged continuous sequence, the stock of work in progress of materials in transit

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd