A certain large city wants to set up a citywide program to recycle newspapers, glass, and plastics as a way to reduce the amount of landfill, preserve the environment, and ultimately save the city some money.An analyst for one of the companies interested in bidding on the recycling contract has computed that they would be able to make a profit if the mean weekly household contribution to recycling exceeds 15 pounds.If this company can make a profit, then it is financially feasible for them to spend the money necessary to build a recycling plant, set up a collection system, and hire the necessary workers.

(a) Identify the appropriate hypotheses for this situation.

(b) Describe a Type I and Type II error in this setting.

(c) Describe the economic consequences to the company for each of these types of errors.