An appliance manufacturer claims to have developed a new toaster oven that consumes an average of no more than 250 W. From previous studies, it is believed that power consumption for toaster ovens is normally distributed with a standard deviation of 18 W. A consumer group suspects the actual average is more than 250 W. They take a sample of16 toaster ovens and calculate the average consumption to be 260 W.Answer the following questions:

1.Would you reject the Null at 1% level of significance?

2.Would you say the toaster oven consumes more than 250 W ofpower if you are willing to commit a Type 1 Error of2.5%?

3.What is the cut-off Watts at 2.5% level of significance?

4.In reality, suppose the average power consumption is 265 W.What is the Type II error when Type I error is set at2.5%?

5.What is the cut-off Watts at 1% level of significance?

6.In reality, suppose the average power consumption is 265 W.What is the Type II error when Type I error is set at 1%?