Consider a company that wishes to verify that an incoming product meets the stipulated requirements by screening the products using a statistical sampling plan. If the sample inspection reveals that a lot was accepted, yet it had more defects than it should, this is referred to as:
A) a Type I error.
B) producer's risk.
C) consumer's risk.
D) a sampling error.

Question

Quizplus · Accepted Answer

If the sample inspection accepts a lot that actually has more defects than it should, this is considered a consumer's risk. This means that the company may end up accepting and using a product that does not meet the requirements and may result in customer dissatisfaction or even harm. A Type I error refers to rejecting a lot that actually meets the requirements, while producer's risk refers to the risk that a lot is rejected when it actually meets the requirements. A sampling error refers to errors that occur in the sampling process itself, such as bias or inadequate sample size.

Consider a Company That Wishes to Verify That an Incoming