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Atul Sharma

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  1. Atul Sharma's post in Consumer's risk was marked as the answer   
    Type 2 error or consumer risk error is very useful in determining sample size. Power and sample size are important and are widely used in our lives. If the pharmaceutical company wants to prove that the medicine is right they have to determine the sample size. Suppose anyone is down with fever and the doctor tells you that the medicine is 99.9% effective, you may ask doctor as to how many patients were considered in the experiment and at what confidence interval. So both the consumer and producer risk can be reduced by increasing sample size. (Obviously increasing sample size will increase the cost of inspection and this is not easy many times).
     
    So it is not always true that reducing consumers risk will increase producers risk. 

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