Question: In each of the following cases, set up the null hypothesis and the alternative: Explain how you will proceed testing the hypothesis.
(a) A biscuit manufacturer is packaging 16-oz. packages. The production manager feels that something is wrong with the packaging and that the packages contain too many biscuits.
(b) A tire manufacturer advertises that its tires last for at least 30,000 miles. A consumer group does not believe it.
(c) A manufacturer of weighing scales believes that something is going wrong in the production process and the scale does not show the correct weight. In each of the problems above, can you identify the costs of mistaken decisions if we view the hypothesis-testing problem as a decision problem?