In 2007, the US Census Bureau reported that 71.3% of American families owned their homes. The city council is debating on whether to offer tax breaks to first time homebuyers, but they only want to do so if there is strong evidence that the rate of home ownership has increased since 2007 since it will cost the city money to do so. What are the null and alternative hypothesis?

Describe a Type I error along with the consequence.

Describe a Type II error along with the consequence.

What is a more serious error in this context? Justify your answer.

For each type of error, tell who would be harmed.