Chapter 10.1, Problem 40AYU

Refer to Problem 18. Researchers must choose the level of significance based on the consequences of making a Type I error. In your opinion, is a Type I error or Type II error more serious? Why? On the basis of your answer, decide on a level of significance, α. Be sure to support your opinion.

18. Fair Packaging and Labeling Federal law requires that a jar of peanut butter that is labeled as containing 32 ounces must contain at least 32 ounces. A consumer advocate feels that a certain peanut butter manufacturer is shorting customers by underfilling the jars.