The influence of inspection error on single screening procedure under onesided specification

The screening problem, namely, observing the screening variable rather than directly observing the performance variable, has been studied for a long time. However, inspection error which frequently occurs in a screening process has not been investigated in previous research. In this paper, we proposed a two-stage single screening procedure under one-sided specification in order to gain insight into this issue. Stage I is the classic screening procedure, whilst in Stage II we developed an effective index of inspection to calculate the cutoff limit taking into account of the influence of inspection error. Additionally, we analysed the influence of inspection error if we ignore it, and it was demonstrated that once the true selection ratio (beta) is given, the effective index of inspection inversely changed with the ratio of sigma_m/sigma_x (a reflection of the precision level). The software simulation results showed that the inspection error should not be ignored in the screening problem.