Question: 13 Consider Exercise 9.12, and suppose that Consolidated Power has been experiencing technical problems with the cooling system. Because the system has been unreliable, the company feels it must take precautions to avoid failing to shut down the plant when its waste water is to warm. Other things being equal, should Consolidated Power set the probability of a Type 1 error equal to a = .01 or a - .05? Explain

“Exercise 12: Consolidated Power, a large electic power utility, has just build a modern nuclear power plant. This plant discharges waste water that is allowed to flow into the Atlantic Ocean. The Environment Protection Agency (EPA) has ordered that the waste water may not be excessively warm so that thermal pollution of the marine environment near the plant can be avoided. Because of this order, the waste water is allowed to cool in specially constructed ponds and is then released into the ocean. This cooling system works properly if the mean temperature of waste water discharged is 60 degrees F or cooler. Consolidated Power is required to monitor the temperature of the waste water. A sample of 100 temperature readings will be obtained each day, and if the sample results cast a substantial amount of doubt on the hypothesis that the cooling system is working properly (the mean temperature of waste water discharged is 60 degrees F or cooler), then the plant must be shut down and appropriate actions must be taken to correct the problem.”