1. Suppose for simplicity that both Type I and Type II errors resulted in deaths only. Keeping in mind that too little caution produces Type I errors and too much caution produces Type II errors, what would be the best mix of Type I and Type II errors? Explain you answer. 2. Are the resources that are spent on Research and Development but do not yield profitable innovations wasted? Why or why not? Explain you answer. 3. Professional football teams sometimes charter airplanes to take them to their away games. Would you feel safer on a United Airlines plane that had been charted by the Carolina Panthers than on a regularly scheduled United Airline flight? Explain you answer. 4. Most attempts to aid people living in low-income nations have come in one of two forms; (i) gifts of consumer goods such as food, and (ii) assistance in constructing or obtaining capital goods such as tractors, roads, or dams. Based on what you have learned in chapter 4, how likely are such efforts to permanently raise the standard of living in such countries? Explain.
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