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# Statistics

The feasibility of constructing a profitable electricity-producing windmill depends on the mean velocity of the wind. For a certain type of windmill, the mean would have to exceed 20 miles per hour in order for its construction to be warranted. The determination of a site's feasibility is a two stage process. In the first stage, readings of the wind velocity are taken and the mean is calculated. The test is designed to answer the question, Is the site feasible? In other words, is there sufficient evidence to conclude that the mean wind velocity exceeds 20 mph? If there is enough evidence, the site is removed from consideration. Discuss the consequences and potential costs of Type 1 and Type II errors.

#### Solution Preview

H0: The mean wind velocity does not exceed 20 miles per hour

H1: The mean wind velocity exceeds 20 miles per hour

Discussion: Suppose that for a sample that is analysed, the test statistic exceeds the critical value. Then we reject H0 and accept ...

#### Solution Summary

Neat and step-by-step solution / explanation is provided.

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