The Quality manager for ABC Corporation is responsible for controlling the production output to reduce the...

The Quality manager for ABC Corporation is responsible for controlling the production output to reduce the chance that defective products are sent to customers. The manager is considering the purchase of automated machines that will scan each finished item and mark each as acceptable or defective. Previous test runs with the machines vs manual examination have given results shown in the following Classification Confusion Matrix.

	Predicted (according to machine)
Actual (from manual exam)	Acceptable	Defective
Acceptable	1543	98
Defective	522	892

overall error rate	20.3%
class 0 error rate	36.9%
class 1 error rate	5.97%

* Describe the potential costs of a Class 0 error vs a Class 1 error for this scenario.

** Describe the costs of each type of error in this scenario.

*** Which type of error would be more harmful to the company?

Please help answer the * questions. I am not sure what type of answer is wanted and there is no guidance in this subject in my textbook. Time is of the essence. Thanks for answering!

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Expert Solution

orchestra answered 1 year ago

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