The vice president of operations for a veterinary provide company has designed a new quality control process that she believes will significantly decrease the reject rate in the packing line for bottles of equine glucosamine from its historical level of 32 units per 1,000. She now wants to execute a pilot of this process and use it to see whether the data support her belief.
What is the null hypothesis for this test?
In the context of this scenario, what would be the consequences of making a Type I error?
In the context of this scenario, what would be the consequences of making a Type II error?