The probability of accepting a lot of unacceptable quality is known as

Question

Options

• AAlpha risk.
• B1-beta.
• CProducer's risk.
• DBeta risk.

• A
  2% (1)
• B
  12% (5)
• C
  5% (2)
• D
  80% (33)

Explanation

Beta risk, also called Type II error or consumer's risk, is the probability of accepting a lot that is actually of unacceptable quality -- the inspector "misses" the bad batch and lets it through. Alpha risk (option A) is the opposite error: rejecting a lot that is actually acceptable, which is why it is called producer's risk (option C) -- the producer's good product is wrongly turned away. Options A and C refer to the same concept under different names, both describing Type I error, not the acceptance of bad product. Option B, 1-beta, is the power of the test -- the probability of correctly rejecting an unacceptable lot -- which is the desirable outcome, not the error being described.

Memory tip: Think "Beta = Buyer accepts bad." The consumer (buyer) is the one harmed when a bad lot slips through, which is why beta risk is also called consumer's risk.

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