Production managers on an assembly line must monitor the output to be sure that the level of defective products remains small. They periodically inspect a random sample of the items produced. If they find a significant increase in the proportion of items that must be rejected, they will halt the assembly process until the problem can be identified and repaired. Which type of error would the factory owner consider more serious?

Question

Michelle Dudley

Mathematics

18 April, 00:57

Production managers on an assembly line must monitor the output to be sure that the level of defective products remains small. They periodically inspect a random sample of the items produced. If they find a significant increase in the proportion of items that must be rejected, they will halt the assembly process until the problem can be identified and repaired. Which type of error would the factory owner consider more serious?

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Jayson Shah · Answer 1

Factory owners would consider the Type I error worse, because the assembly process will be halted while it shouldn't have been and thus they will lose money.