Answer:
Type I error: Reject the claim that the proportion of settled malpractice suits is 0.18 when the proportion is actually 0.18.
Type II error: Fail to reject the claim that the proportion of settled malpractice suits is 0.18 when the proportion is actually different from 0.18.
Explanation:
We are given the following hypothesis below;
Let p = proportion of people who write with their left hand
Null Hypothesis,
: p = 0.18 {means that the proportion of people who write with their left hand is equal to 0.18}
Alternate Hypothesis,
: p
0.18 {means that the proportion of people who write with their left hand is different from 0.18}
Type I error states that we would reject the null hypothesis given the fact that the null hypothesis was actually true. Or in other words, the probability of rejecting a true hypothesis.
So, according to our question, Type I error is to Reject the claim that the proportion of settled malpractice suits is 0.18 when the proportion is actually 0.18.
Type II error states that we would accept the null hypothesis given the fact that the null hypothesis was actually false. Or in other words, the probability of accepting a false hypothesis.
So, according to our question, Type II error is Fail to reject the claim that the proportion of settled malpractice suits is 0.18 when the proportion is actually different from 0.18.