The manager at Costello Drug Store assumes the company's employees are honest. However, there have been many shortages from the cash register lately. There is only one employee who could have taken money from the register during these periods. Realizing that the shortages might have resulted from the employee inadvertently, giving incorrect change to customers, the employer does not know whether to forget the situation or accuse the employee of theft. In words, what would the null and alternative hypotheses be in this situation? Explain your choices.

1. What constitutes a Type I error in this problem?
2. What is a Type II error? Which do you think is more serious? Explain. (Attention: do not give definitions of type I and II errors, but explain in context the type I and II errors for this specific case)