OPERATIONS MANAGEMENT
Jane is in charge of manufacturing lumber. The saw blade that cuts the lumber is 1/4 inches wide +/- 0.001 inches. Jane notices from her run chart that the lumber she produces varies between 0.249 inches to 0.251 inches. John tells Jane that she needs to change the saw blade because it is NOT cutting within the process parameters. If Jane changes out the blade this will be an example of:
Select one or more:
a. TYPE TWO ERROR
b. TYPE FIVE ERROR
c. TYPE FOUR ERROR
d. John is CORRECT. Therefore there is NO ERROR
e. TYPE ONE ERROR
OPERATIONS MANAGEMENT
The given is an example for Type I error as this kind of error is also known as Producer’s risks. In the given scenario both John and Jane are from production side, and they were able to find out the issue during the production itself, before it reaches to the end customer. If this issue is not resolved during production there is a high chance that the customer will complain about the product and that way it will increase chances for Type II errors (Consumer’s risk).
Type I and Type II errors can be defined in terms of hypothesis testing.
Or simply:
OPERATIONS MANAGEMENT Jane is in charge of manufacturing lumber. The saw blade that cuts the lumber...