A Type I error in the context of this study occurs if the city council

a. Finds convincing evidence that a majority of residents supports the tax increase, when in reality there isn’t convincing evidence that a majority supports the increase.

b. Finds convincing evidence that a majority of residents supports the tax increase, when in reality at most 50% of city residents support the increase.

c. Finds convincing evidence that a majority of residents supports the tax increase, when in reality more than 50% of city residents do support the increase.

d. Does not find convincing evidence that a majority of residents supports the tax increase, when in reality more than 50% of city residents do support the increase.

e. Does not find convincing evidence that a majority of residents supports the tax increase, when in reality at most 50% of city residents do support the increase.

Members of the city council want to know if a majority of city residents supports a 1% increase in the sales tax to fund road repairs. To investigate, they survey a random sample of 300 city residents and use the results to test the following hypotheses:

H₀: p=0.50
H_a: p>0.50

where p is the proportion of all city residents who support a 1% increase in the sales tax to fund road repairs.

Select the best answer.