A new process is being considered for the liquefaction of coal. The old process yielded a mean of 15 kg of distillate fuel per kilogram of hydrogen consumed in the process. Let μ represent the mean of the new process. A test of H0: μ ≤ 15 versus H1: μ > 15 will be performed. The new process will be put into production if H0 is rejected. Putting the new process into production is very expensive. Therefore it would be a costly error to put the new process into production if in fact it is no better than the old process. Which procedure provides a smaller probability for this error, to test at the 5% level or to test at the 1% level?
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