A large restaurant contracts with a local laundry to wash white napkins. The laundry returns the napkins in bundles of one-hundred napkins. The restaurant randomly samples ten napkins from each bundle to make sure that the napkins are clean with no stains or other defects. By sampling only ten of the napkins, the restaurant may conclude that the all the napkins are clean and use the bundle, even when the napkins are actually dirty and should not be used. This sampling risk is called:
A) producer's risk.
B) uncertainty.
C) consumer's risk.
D) inspection risk.

Question

Quizplus · Accepted Answer

This sampling risk is called consumer's risk as it refers to the risk of accepting a batch of products that are of poor quality, even though the sample of the products indicates that the batch is of good quality.

A Large Restaurant Contracts with a Local Laundry to Wash