This is the normal power up procedure for this era of machine - connecting the power cord and then pressing the flipper button or closing the coin switch will energize the lock or hold relay and distribute power to the circuits.
Placing the ball in one of the playfield eject holes and having it ejected from the hole is normal when the machine is in game over mode.
What happens to machine when it's powered on and the ball is placed in the outhole below the flippers? What happens when you press the red credit/start button on the front of the cabinet?