An appliance manufacturer claims to have developed a new toaster oven that consumes an average of no more than 250 W. From previous studies, it is believed that power consumption for toaster ovens is normally distributed with a standard deviation of 18 W. A consumer group suspects the actual average is more than 250 W. They take a sample of  16 toaster ovens and calculate the average consumption to be 260 W.  Answer the following questions: 1.  Would you reject the Null at 1% level of significance? 2.  Would you say the toaster oven consumes more than 250 W of  power if you are willing to commit a Type 1 Error of  2.5%?  3.  What is the cut-off Watts at 2.5% level of significance? 4.  In reality, suppose the average power consumption is 265 W.  What is the Type II error when Type I error is set at  2.5%? 5.  What is the cut-off Watts at 1% level of significance? 6.  In reality, suppose the average power consumption is 265 W.  What is the Type II error when Type I error is set at 1%? 7.  Based on these calculations, what happens to Type II error if Type I error is lowered?

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An appliance manufacturer claims to have developed a new toaster oven that consumes an average of no more than 250 W. From previous studies, it is believed that power consumption for toaster ovens is normally distributed with a standard deviation of 18 W. A consumer group suspects the actual average is more than 250 W. They take a sample of  16 toaster ovens and calculate the average consumption to be 260 W.  Answer the following questions:

1.  Would you reject the Null at 1% level of significance?
2.  Would you say the toaster oven consumes more than 250 W of  power if you are willing to commit a Type 1 Error of  2.5%? 
3.  What is the cut-off Watts at 2.5% level of significance?
4.  In reality, suppose the average power consumption is 265 W.  What is the Type II error when Type I error is set at  2.5%?
5.  What is the cut-off Watts at 1% level of significance?
6.  In reality, suppose the average power consumption is 265 W.  What is the Type II error when Type I error is set at 1%?
7.  Based on these calculations, what happens to Type II error if Type I error is lowered?
8. Based on these calculations,  what happens to Type I error if Type II error is increased?
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