A Quality Inspector for Alpha-Beta Co

question 1

Multiple Choice

A quality inspector for Alpha-Beta Co. is concerned about the quality of the batch of several thousand blank DVD disks which his company produced this week and is preparing to ship. If, based on his acceptance sample, he decides to ship this batch without inspection, which type error would be possible?

• A) inspector's error
• B) producer's error
• C) Type I error
• D) Type II error
• E) both Type I and Type II errors

---

Definitions:

Accounts Payable

Liabilities owed by a business to its suppliers or creditors for goods or services received.

Cost-Benefit Considerations

The process of weighing the total expected costs against the total expected benefits of one or more actions in order to choose the best or most profitable option.

Risk Assessment

The process of identifying, analyzing, and evaluating the risks involved in a certain situation or for a specific investment.

Protect Assets

Measures or strategies implemented by a company or individual to safeguard physical and intangible assets from loss, damage, or theft.