Final answer:
A Type I error would occur if the company incorrectly concludes that their new fuel has lower CO2 emissions when it actually emits 8.9 kg per gallon, the same as regular gasoline. ooption C is correct answer.
Step-by-step explanation:
The company would commit a Type I error under the condition stated in option C: The mean amount of CO2 emitted by the new fuel is actually 8.9 kg, and they conclude it is lower than 8.9 kg. In statistical hypothesis testing, a Type I error occurs when the null hypothesis (H0: μ=8.9 kg) is true, but is incorrectly rejected in favor of the alternative hypothesis (Ha: μ<8.9 kg).
This means the company would be rejecting the true state of affairs (that the new gasoline actually has the same CO2 emissions as regular gasoline) and incorrectly concluding that their new product is better when it is not.