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

Uses and benefits of risk breakdown structure, Uses and Benefits of RBS  ...

Uses and Benefits of RBS  The main uses and benefits of the RBS are outlined in this section.  Risk identification aid  Risk Breakdown Structure is used as a list that

Describe quality control, Question 1 There cannot be a single ideal str...

Question 1 There cannot be a single ideal structure for all organisations as different organisations have different size, environment, resources, technologies, and goals. There

Illustrate network diagrams and bar charts, Network diagrams and bar charts...

Network diagrams and bar charts have different parts to play within planning a project. Where each of such tools used is and what does this demonstrate? The network diagram dis

Draw a gantt chart and network diagram, Use the WBS you developed in Questi...

Use the WBS you developed in Question to create a project plan with a Gantt chart in Microsoft Project for the project. Clearly identify the milestones for this project. Estimate t

Explain the sources of conflict, In response to changing customer demands a...

In response to changing customer demands and strong competition, the new product development team of Z Company has been working on a new product range. However, the process has not

Upward communication from subordinate to superior, How must be the upward c...

How must be the upward communication from subordinate to superior ? Upward Communication moves through subordinate to the superior within the form of feedback. This takes th

Scoping a project, QUESTION While scoping a project, as much informatio...

QUESTION While scoping a project, as much information as possible should be gathered about the wants and concerns of sponsors and end-users. What are the useful channels of

Project risk, Identifying Project Risk  Risk identification is a proces...

Identifying Project Risk  Risk identification is a process which determines the types of risks that have potential impact on a project. The risk identification is an ongoing pr

Communication-coordination beneficial in project management, How are commun...

How are communication and coordination beneficial in project management software? Communication and coordination: Project software can give automatic report templates al

Concept of project risk audit , Define the Concept of Project Risk Audit  ...

Define the Concept of Project Risk Audit  Audit can be defined as an evaluation of a person, organisation, system, process, enterprise, project or product. Quality risk audit i

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