Question: A new coal liquefaction process is supposed to increase the mean yield ???? of distillate fuel. The new process is very expensive, so it would
A new coal liquefaction process is supposed to increase the mean yield ???? of distillate fuel. The new process is very expensive, so it would be a costly error to put it into production unless ???? > 20. A test of H0 : ???? ≤ 20 versus H1 : ???? > 20 will be performed, and the new process will be put into production if H0 is rejected. Which procedure provides a smaller probability for this costly error, to test at the 5% level or to test at the 1% level?
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