Course Content
Probability Distributions
Probability Distribution – Binomial, Poisson, Normal, and Exponential
0/3
Facility Location and Layout
Site Selection and Analysis, Layout Design and Process
0/3
Probability Distribution – Binomial, Poisson, Normal, and Exponential
Probability Distribution – Binomial, Poisson, Normal, and Exponential
0/4
Data Collection & Questionnaire Design
Data Collection & Questionnaire Design
Sampling: Concept, Process, and Techniques
Sampling: Concept, Process, and Techniques
0/2
Hypothesis Testing: Procedure
Hypothesis Testing: Procedure
0/2
T, Z, F, Chi-square tests
T, Z, F, Chi-square tests
0/2
Operations Management: Role and Scope
Operations Management: Role and Scope
0/1
Facility Location and Layout: Site Selection and Analysis, Layout Design and Process
Facility Location and Layout: Site Selection and Analysis, Layout Design and Process
Enterprise Resource Planning: ERP Modules, ERP Implementation
Enterprise Resource Planning: ERP Modules, ERP Implementation
Scheduling: Loading, Sequencing, and Monitoring
Scheduling: Loading, Sequencing, and Monitoring
0/4
Quality Management and Statistical Quality Control, Quality Circles, Total Quality Management – KAIZEN, Benchmarking, Six Sigma
Quality Management and Statistical Quality Control, Quality Circles, Total Quality Management – KAIZEN, Benchmarking, Six Sigma
0/3
ISO 9000 Series Standards
ISO 9000 Series Standards
Operation Research: Transportation, Queuing Decision Theory, PERT/CPM.
Operation Research: Transportation, Queuing Decision Theory, PERT/CPM.
0/6
Unit VIII: Business Statistics and Operations Management

Key Differences Between Type I & Type II Errors

Error Type What Happens? Example
Type I Error (False Positive) Rejecting a true null hypothesis (finding an effect when there is none) A fire alarm rings, but there’s no fire.
Type II Error (False Negative) Failing to reject a false null hypothesis (missing an actual effect) A fire is burning, but the alarm does not ring.

 

Scenario Reality: Person is Healthy Reality: Person is Infected
Test Result: Positive Type I Error (False Positive) – A healthy person is wrongly diagnosed with COVID-19. ✅ Correct – Infected person is correctly diagnosed.
Test Result: Negative ✅ Correct – Healthy person is correctly diagnosed. Type II Error (False Negative) – An infected person is wrongly told they don’t have COVID-19.
 

How to Reduce These Errors?

  • To reduce Type I Error, lower α (significance level) (e.g., from 5% to 1%).

  • To reduce Type II Error, increase sample size or improve testing accuracy.