An automobile parts supplier owns a machine that produces a cylindrical engine part. This part is supposed to have an outside diameter of three inches. Parts with diameters that are too small or too large do not meet customer requirements and must be rejected. Lately, the company has experienced problems meeting customer requirements. The technical staff feels that the mean diameter produced by the machine is off target. In order to verify this, a special study will randomly sample 100 parts produced by the machine. The 100 sampled parts will be measured, and if the results obtained cast a substantial amount of doubt on the hypothesis that the mean diameter equals the target value of three inches, the company will assign a problem-solving team to intensively search for the causes of the problem.
a. The parts supplier wishes to set up a hypothesis test so that the problem-solving team will be assigned when the null hypothesis is rejected. Set up the null and alternative hypotheses for this situation.
b. In the context of this situation, interpret making a Type I error; interpret making a Type II error.