Give your assessment of the relative costs of Type I and Type II errors in the following situations where a decision is pending:
a. A new synthetic feed additive is found in an experiment to accelerate the growth of hogs sufficiently to reduce the “time to market” by 10%. Should it be added to the feed?
b. Researchers examining longitudinal data that have been collected from a large cohort of nurses notice that those who drink more orange juice have a high incidence of asthma. Should consumption of orange juice be discouraged?
c. Analysts for a department store conduct an experiment and find that price tags with multiple successive markdowns that are visible on the tag generate more sales than tags with a single markdown indicated, even though….