A food safety inspector is called upon to investigate a restaurant with a few customer reports of poor sanitation practices. The food safety inspector uses a hypothesis testing framework to evaluate whether regulations are not being met. If he decides the restaurant is in gross violation, its license to serve food will be revoked.
(a) Write the hypotheses in words.
(b) What is a Type 1 error in this context?
(c) What is a Type 2 error in this context?
(d) Which error is more problematic for the restaurant owner? Why?
(e) Which error is more problematic for the diners? Why?
(f) As a diner, would you prefer that the food safety inspector requires strong evidence or very strong evidence of health concerns before revoking a restaurant's license? Explain your reasoning.