Types of sampling risks, Project Management

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.

Posted Date: 9/29/2012 2:53:08 AM | Location : United States







Related Discussions:- Types of sampling risks, Assignment Help, Ask Question on Types of sampling risks, Get Answer, Expert's Help, Types of sampling risks Discussions

Write discussion on Types of sampling risks
Your posts are moderated
Related Questions
C ontrol charts Control  charts  are  tools  used  for  monitoring,  controlling  and  improving processes over time. These are applicable to administrative processes.

P hases of value engineering process I nvestigation phase: This phase investigates the background information, the technical input reports, the field data, the functiona

what are the objective of the project alignment session program?

ST is the operations director of F Bakery. He is in the process of putting together a project plan for the introduction of a latest production plant that will enable the bakery to

Dr. Adinombe Watage, deputy director of the Family Planning Research Center in Nigeria’s Over-the-River Province, was assigned the task of organizing an training five teams of fiel

Briefly explain the reasons for the growth in outsourcing by organisations. Outsourcing involves the contracting out of a business function to an external third partyprovider.

What are the questions of the initiation phase? Questions to be answered in the initiation phase include the given as: • Why only project management? • Is this feasible?


Q. What communication do I need? Communication is possibly one of the most important functions of a project manager and yet sometimes the least understood. With no people there

There are two learning objectives of this assessment. 1. The first relates directly to the operations management materials presented in the lectures 4 and 5. This assessment wil