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The waiting hour between tremors at a seismological monitoring station is assumed to be Exponentially distributed with mean theta (in hours). A single observation will be used to test the null hypothesis theta=10 against the alternative theta not equal to 10. The null hypothesis will be rejected if the observed waiting time is less than 8 hours or more than 12 hours a) Computer the probability of Type 1 error for this test b) Computer the probability of Type 2 error if theta=4

Operation Management, Management Studies

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