A company specializing in parachute assembly states that its main parachute failure rate is not more than

Question:

A company specializing in parachute assembly states that its main parachute failure rate is not more than 1%. You perform a hypothesis test to determine whether the company’s claim is false. When will a type I or type II error occur? Which error is more serious?
a. State the null and alternative hypotheses.
b. Write the possible type I and type II errors.
c. Determine which error is more serious.