Choosing H0 and H1: In a manufacturing process, each item is tested as it is manufactured to determine whether it has sufficient strength for the use to which it will be put. There are two choices: The item will be used, or the process will be shut down for recalibration at some expense. Should H0 be that the item has sufficient strength, or that it does not? Which of the two choices will be made if H0 is rejected in each case? If H0 is not rejected?

Discuss the implications of Type I and Type II errors for each choice of H0.

In a clinical trial, a new drug is tested to see how its effectiveness compares with that of a currently used drug. Should H1 be that the new drug is more effective, or that it is less effective? Discuss the decisions that would be made and the implications of Type I and Type II errors in each case.