If the cost of a Type II error is low,narrower control limits should be selected.

Question

Quizplus · Accepted Answer

If the cost of a Type II error is low, it means that we can tolerate a higher likelihood of accepting a false null hypothesis. In this case, we can use narrower control limits to increase the sensitivity of our process and detect smaller deviations from the mean. This will reduce the risk of a Type I error but may increase the risk of a Type II error, which is acceptable if its cost is low.

If the Cost of a Type II Error Is Low,narrower