Producer's And Consumer's Risk When Proprtion Defective is a Random Variable: A More General Approach

摘要

Samuel Graves and Jeffrey Ringuest (1991) present an analysis of producer's and consumer's risk in which they allow the proportion defective tobe a random variable having either a uniform or a triangular distribution. This paper suggests that a much more flexible continuous distribution should be used instead. The beta distribution can take on a variety of shapes and can accommodate many differnet assumptions about the proportion defective. Also, cocnerns about the mode of hte distribution that arise with the use of triangular distribution can be avoided. In addition, alternative approaches to the integration problems encountered in Graves and ringuest are presented.