The Producer's risk is the risk:
A) of accepting lots of good quality
B) of rejecting lots of bad quality
C) of accepting lots of bad quality
D) of rejecting lots of good quality

Question

Quizplus · Accepted Answer

The Producer's risk is the risk of rejecting lots of good quality. This means that a producer may reject a lot that is actually of good quality, thus leading to lost profits and potential damage to the producer's reputation. Therefore, the best choice is D, as it correctly identifies the risk of rejecting lots of good quality.

The Producer's Risk Is the Risk