Shipping. A shipping company is testing their new packing machine, hoping to increase the safety of their shipments by checking on the defective rate after a shipment is sent. Sample was collected and the rate of defective shipment before and after using the new packing machine has been tested.

a) Is this a one-tailed or a two-tailed test? Why?

b) In this context, what would a Type I error be?

c) In this context, what would a Type II error be?

d) In this context, what is meant by the power of the test?

e) If the hypothesis is tested at the 5% level of significance instead of 1%, how will this affect the power of the test?

f) The shipping company hoped to base their decision on the data collected from 150 shipments, but time and budget constraints may force them to cut back to 50 shipments.

How would this affect the power of the test? Explain.