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Type I error and Type II error:

Let X₁, X₂, X₃, X₄ be a random sample from a Poisson distribution with parameter λ and let Y = X₁ + X₂ + X₃ + X₄. You decide to test λ = 1.60 versus λ < 1.60 using following decision rule:

Reject λ = 1.60 in favor of λ < 1.60 when Y ≤ 2.

a. Find the Type I error, α.

b. Find the Type II error, β, when λ = 0.70.

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