Here I am again, please help me with this question, suppose I am a manager of a

Question

Here I am again, please help me with this question, suppose I am a manager of a paint factory and the customers complained that the containers hold less than the amount printed on the can.  The corporate office is concerned the container hold more.  Each container is one gallon, how would you formulate the null and alternative hypotheses to test the customers claim?  That of the corporate management? Both customers and corporate management?  What reasonable criteria will I use to set a value for the level of significance to be used for the test?  Suppose I arrived at the decision that there is not enough evidence to reject the null hypothesis, could I have made a mistake?  What type of error would result in this case?

Explanation / Answer

Your null in both cases would be that the paint can holds onegallon. For the customer, your alternative would be that the can holdssome amount less than one gallon. For the managment, your alternative would be that the canholds some amount more than one gallon. A reasonable and still significant value would be =0.05 If you cannot reject the null, you could have made amistake. Possible errors are: You tested the wrongalternative, your alpha was too high, you did not properly(randomly) sample, etc.

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