Solution:
In this case, null hypothesis is that mean is not less than 32.
Hence, type I error is to conclude that the true mean is less than 32 miles per gallon, even though it is not.
This could lead to a lawsuit where the Carter Motor Company might have to pay a fine even though they are innocent.
Remember that,
Type I error = rejecting null hypothesis even if it is true.
Type 1 error can only occur when you reject
[tex]H_0[/tex]Hence,
The type 1 error for the test is
Reject the claim that the mean is equal to 32 miles per gallon when it is actually less than 32 miles per gallon
