In acceptance sampling, the risk of accepting a poor-quality lot is known as
A) Consumer's risk.
B) Producer's risk.
C) a Type I error.
D) None of these alternatives is correct.

Question

Quizplus · Accepted Answer

Consumer's risk is the risk of accepting a poor-quality lot. This is because the consumer is the one who ultimately receives and uses the product, and thus bears the consequences of accepting a poor-quality lot. Producer's risk, on the other hand, refers to the risk of rejecting an acceptable lot, which may result in additional costs and delays for the producer. Type I error is a statistical term that refers to the probability of rejecting a null hypothesis when it is actually true. While acceptance sampling involves statistical techniques, the primary concern is the risk to the consumer, making choice A the best answer.

In Acceptance Sampling, the Risk of Accepting a Poor-Quality Lot