A pharmaceutical company implements a large clinical trial of 10,000 people who have received a new Covid vaccine. The company expects the people receiving the new vaccination will have less than a 2% chance of getting Covid in the following year. The company selects a significance level of 0.01. Describe what a Type 1 error would be in this context. Quoting a definition will not be sufficient, explain what it means for this specific example for full credit.

2. From a sample of 125 customers of a local furniture store, 70 were Moorpark residents. Find the 95% confidence interval for the proportion of Moorpark residents who shop at this furniture store. Show your work or indicate the calculator or software commands you used and the parameters you entered for this function. Interpret this confidence interval by stating your answer in a complete sentence.