Carpetland salespersons average $8000 per week in sales. Steve Contois, the firm's vice president, proposes a compensation plan with new selling incentives. Steve hopes that the results of a trialselling period will enable him to conclude that the compensation plan increases the average sales per salesperson.a. Develop the appropriate null and alternative hypotheses.Ho: μless than or equal to 8000Ha: μgreater than 8000b. What is the Type I error in this situation?In this situation, a Type I error would occur if it was concluded that the new compensation plan provides a population mean weekly sales less than 8000What are the consequences of making this error?This could lead to not implementing a plan that would increase sales. ✓c. What is the Type II error in this situation?In this situation, a Type II error would occur if it was concluded that the new compensation plan provides a population mean weekly sales greater than 8000What are the consequences of making this error?This could lead to implementing the plan when it does not help.when in fact it does not.when in fact it does not.

The provided information is as follows:The average carpet land salesperson per week in sales is $8000.a) The null and alternative hypotheses are as follows:The null hypothesis states that the compensation plan is less than or equal to the average sales per salesperson.The alternative hypothesis states that the compensation plan increases the average sales per salesperson.b) The Type I error is as follows:In this, situation Type I error would occur if it were concluded that the new compensation provided a population mean weekly sales greater than 8000 when the fact it does not.The consequences of making this error are as follows:This could lead to implementing a plan that would increase sales.The Type I error rejects the null hypothesis when it is true.In this case, we conclude that the compensation plan increases the average sales per salesperson when the fact is that the compensation plan is less than or equal to the average sales per salesperson.c) The Type II error is as follows:In this situation, a Type II error would occur if it was concluded that new compensation provided a population mean weekly sales is less than or equal to the 8000 when the fact it does not.The consequences of making this error are as follows:This could lead to not implementing a plan that would increase sales.The Type II error is the fail to reject the null hypothesis when it is actually false.a) The null and alternative hypotheses are asb) In this, situation Type I error would occur if it were concluded that the new compensation provided a population mean weekly sales greater than 8000 when the fact it does not.This could lead to implementing a plan that would increase sales.c) In this situation, a Type II error would occur if it was concluded that new compensation provided a population mean weekly sales is less than or equal to the 8000 when the fact it does not.This could lead to not implementing a plan that would increase sales.