The manager of a large manufacturing firm is considering switching to new and expensive software that promises to reduce its assembly costs. Before purchasing the software, the manager wants to conduct a hypothesis test to determine if the new software does reduce its assembly costs.

Would the manager of the manufacturing firm be more concerned about a Type I error or a Type II error? Explain.

Would the software company be more concerned about a Type I error or a Type II error? Explain.

Your responses are to be in detail with examples, citations and references. Be sure to identify the source of your example in your posting.