Step 1 :A Type I error, also known as a false positive, occurs when we reject a true null hypothesis. In this context, the null hypothesis is that the new procedure does not increase the average profit of installing a carpet.
Step 2 :Therefore, a Type I error would mean that Joan concludes that the new procedure increases the average profit when it actually does not.
Step 3 :So, the correct answer is 'A Type l error would mean that Carpetland implements a new procedure that actually does not increase profits.'