Answer
Type 1 error: If we reject the null hypothesis, $p \leq 0.20$, while actually the claim that at most 20% of applicants become police officers, is true.
Type 2 error: If we fail to reject the null hypothesis, $p \leq 0.20$, while actually the claim that at most 20% of applicants become police officers, is actually false.
Work Step by Step
As given above