A coin-operated coffee machine made by BIG Corporation was designed to discharge mean of ounces ounces of coffee per cup. If it dispenses more that that on average, the corporation might lose money, and if it dispenses less, the customers might complain.
Believing that mean amount of coffee dispensed by machine, , is less than ounces, BIG plans to do statistical test of the claim that the machine is working as designed. Technicians gather a random sample of fill amounts and find out that the mean of sample is ounces and that standard deviation is ounces.
Determine the null hypothesis and the alternative hypothesis that should be employed for the test?
In the context of this test, Determine a type I error?
Suppose that BIG decides not to reject the null hypothesis. What kind of error might it be making.