For each, you need to state the type I and II errors in terms of the application. Discussion which type of error is worse than the other, and explain why.

Application 1. Suppose you are the FDA. A pharmecutical company need your approval of a new medicine. Becuase it is a new medicine, FDA assumes it is a defective medicine and asks the company to provide evidence for its effectiveness. In terms of hypothesis testing, we set

H0: the medicine is defective, versus H1: the medicine is effective.

Application 2.Suppose you are a court judge dealing with a series killer case. Based on the law, a suspect is innocent until proven guilty. Thus we have

H0: the suspect is not guilty, versus H1: the suspect is guilty.