Answer:
Type I error would occur if we reject null hypothesis and conclude that the average amount is greater than $3,200 when in fact the average amount is $3,200 or less.
Step-by-step explanation:
We are given the following information in the question:
The null and alternative hypotheses:
[tex]H_{0}: \mu \leq \$3,200\\H_A: \mu > \$3,200[/tex]
where μ is the average amount of money in a savings account for a person aged 30 to 40.
Type I error:
Thus, for the given hypothesis test type I error is represented as:
Type I error would occur if we reject null hypothesis and conclude that the average amount is greater than $3,200 when in fact the average amount is $3,200 or less.