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

International bussies, VK Ltd a multi-product Company, furnishes you the fo...

VK Ltd a multi-product Company, furnishes you the following data relating to the year 2000. First Half of the year Second Half of the year Sales Rs. 45,000 Rs. 50,000 Total Cost Rs

International/global competitive bidding (icb), Steps involved for Internat...

Steps involved for International/Global Competitive Bidding (ICB)      Now that we are aware of the requirements of ICB, let us understand the steps involved in ICB. There can b

How is economic order quantity depended on costs, How is Economic Order Qua...

How is Economic Order Quantity depended on costs? Economic Order Quantity depends on two costs as illustrated below: - Inventory procurement costs that consist of expenditur

Explain de-centralized management model, Solution-if I am the owner of the...

Solution-if I am the owner of the three coffee shops within a 50 mile radius, then I would adopt a de-centralized management model having self directed teams. This will help me in

Preliminary design, Having given the guidelines in the form of design s...

Having given the guidelines in the form of design specifications the designer should be given a free hand in developing the preliminary design of the product. However i

What do you meant by change of scope in a project, Question: (a) (i) Wh...

Question: (a) (i) What do you meant by "a change of scope" in a project? (ii) Unplanned changes (for e.g, unplanned expenses) might occur during the implementation phase of

Employee involvement, All the persons working in the organization ( ind...

All the persons working in the organization ( inducing managers and workers ) should be involved in TQM operation if it is to serve its purpose fully. TQM is a strat

Factors affecting process planning - processing method, Processing Method ...

Processing Method The process by which  product is made has a direct impact on the  process planning because variation of the  process will vary  the type of machine  tool, eq

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