Answer:
a) Alternative and null hypotheses:
H0 : Susan is ill
Ha : Susan is not ill
b) Type I error:
In type I error, the null hypothesis, H0 is rejected, even though it is correct.
The type I error here: We conclude Susan is not ill, even though she is ill.
Type II error:
In type II error, we fail to reject null hypothesis, H0, even though it is false.
Type II error here: We conclude Susan is ill, even though she is not ill.
c) The type I error is more serious.
In the type I error here, we conclude Susan is not sick even though she is sick, which is a very dangerous thing to do health wise.