According to the risk/payoff matrix, during the phase of concept/project evaluation of the new products process, a _____ error occurs when a winning product is discarded.
A) drop
B) decay
C) launch
D) development

Question

Quizplus · Accepted Answer

During the concept/project evaluation phase, one of the risks is discarding a potential winning product. This is referred to as a type I error or a "drop" error, and it can be costly for the company in terms of missed opportunities and lost revenues. The other options (decay, launch, and development) do not accurately describe this specific risk in the concept/project evaluation phase.

According to the Risk/payoff Matrix, During the Phase of Concept/project