Please solve and show work for #1 and #2.

Please include formula and how you got to the answer.

Please explain reasoning.

1. In a trial a jury must decide between two hypotheses: Ho: The accused individual is innocent Hq: The accused individual is guilty 2. What is the type I error and type II error in this hypothesis test? Which error is considered more serious in the U.S. judicial system? Assume that the equity risk premium is normally distributed with a population mean of 9 percent and a population standard deviation of 25 percent. Over the last three years, equity returns (relative to the risk-free rate) have averaged -3.0 percent. You have a large client who is very upset and claims that results this poor should never occur. Evaluate your client's concerns. A) Construct a 90 percent confidence interval around the population mean for a sample of three-year returns. B) What is the probability of a -3.0 percent or lower average return over a three-year period? C) Your client claims an average return of 11 percent or higher is desirable, what is the probability of a 11 percent of higher average return over a three-year period