Suppose that for many years a certain kind of power unit produced
by the E. G. Company has, on the average, produced 1000 V of
power/hr. The unit has recently been redesigned and E. G. now
claims it produces more power, on the average, than the old
design. As a user of such a power unit, you must decide to
accept the claim or not, so you sample four units observing
v = 1250 V ands = 100 V.
(a) How should the null and alternative hypotheses be stated by
you, a user?
(b) Find the critical region for a 0.05 and a 0.01 level
tests.
(c) What decisions are made in part (b)?
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