Question

Which of the following is an example of consumer risk

		halting production to adjust a machine when your process was actually in control
		buying a defective car
		returning your "dead" stereo for warranty repair when its malfunction was caused by it not being plugged in
		Producer risk

Answer 1

Question1 Which of the following is an example of consumer risk?

		Answer1 Buying a defective car Consumer risk is the risk that problems with a product that does not meet quality standards and will go undetected and thus enter the market. This can leads to financial losses and some other losses like reputation loss, potential market loss, or even loss of lives of consumers. In (Option B) Buying a defective car can lead to accident or any other problems and this will result into loss of finance, market or even life of consumer who purchased that defective product. (a) Halting production to adjust a machine when your process was actually in control- it is also not treated as consumer risk product is not come in the market and consumers not purchased it.
		(c) Returning your "dead" stereo for warranty repair when its malfunction was caused by it not being plugged in- it is an example of returning equipments for repair or replacement. It is not the consumer risk.
		(d) Producer risk- it is the chance that a good product will be rejected by an inspection. It is also a probability that a good product will be rejected as a bad product by the consumers. Producer and consumer risk are different from each other.

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