1.I own a small kayak rental company just north of Kingston.I have 10 kayaks that I rent out on the 12 key weekends through the summer.It is a pretty good business: I rent my kayaks for $80/day using a first-come first-serve basis to people through a website.When a booking is secured, I send the client information on how to unlock their kayak from a stand.My clients pick up their kayaks at the launch point at Devil Lake after 6:00 AM and return them by 9:00 PM that day.

Historically I have purchased new kayaks & related equipment at the beginning of the season for $2000 each and then sell them back to my supplier at the end of the season for $1300.I do this because they come with a one year warranty, so I do not need to worry about repairs, etc.

My only problem is that I occasionally have more potential customers than kayaks.My supplier says he can provide an additional 5 kayaks for a discounted price of $1800 each and still buy all the kayaks back at the end of the summer.I have and am thinking taking his offer but I am not sure if it makes sense.

a.construct the appropriate null and alternative hypothesis for this problem.

b.In the context of this problem, what would committing a type two error mean?