Assume you are the manager of a paint manufacturing factory. Your company has received complaints from customers that the containers hold less than the amount printed on them. On the other hand, corporate management is concerned that the containers hold more than the standard amount. You assign a statistician to verify the claims by the customers and the corporate management. A sample of containers was selected and the volume of paint in each container was measured. Assuming that the volume printed on each container is 1 gallon,
As a manager, what reasonable criteria will you use to set a value for the level of significance to be used in the test? Suppose you arrive at the decision that there is not enough evidence to reject the null hypothesis, could you have made a mistake? What type of error would result in that case?