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 type of symbols used to create a network diagram, What type of symbols...

What type of symbols used to create a network diagram? Symbols used to create a network diagram are as illustrated: An arrow is utilized to represent each activity or even

Project Initiation and Planning Report, Task As the project manager you ar...

Task As the project manager you are required to present an initial project report to the project sponsor that shows how you propose to implement this project. As the project manag

Strategic internatic international business management, 1. Identify a poten...

1. Identify a potential target market for BNP Paribas’ retail banking’s future international expansion strategy

What is trial balance, What is Trial Balance? Trial Balance: Afte...

What is Trial Balance? Trial Balance: After posting each and every journal entries within the ledger, a statement termed as trial balance is prepared to check the accurac

Project Management Organization Framework, The Big Dig has often been criti...

The Big Dig has often been critiqued due to costs and challenges. To what extent do you think is it possible to identify risks associated with the project early in the project''s l

Important role that the corporate level strategy, Strategy is developed at ...

Strategy is developed at different levels in large organisations. The process starts with the corporate strategy which is then translated into the strategy for the business divisio

Brand, contents for introduce a new brand.

contents for introduce a new brand.

How do i organize and apply resources, Q. How do I organize and apply resou...

Q. How do I organize and apply resources? A. The first moreover most important step in the implementation phase is to re-visit the project plan (or the project brief) and to

Objectives of a procurement system, Question 1: (a) Enumerate five obje...

Question 1: (a) Enumerate five objectives of public procurement systems contained in the UNCITRAL Model Law on Procurement of Goods and Construction. (b) Compare and c

Implementation risks in cost of quality approaches, I mplementation risks ...

I mplementation risks There    are    many    problems   which    have   caused    the    cost-of-quality approaches to fail. It is unwise to achieve too much too fast. For ex

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