Answer:
a. The alternative hypothesis H₀: p'₁ ≠ p'₂ is accepted
b. Type I error
Step-by-step explanation:
Proportion of California residents who reported insufficient rest = 8.0%
Proportion of Oregon  residents who reported insufficient rest = 8.8%
p'₁ = 0.08 * 11545 =923.6
p'₂ = 0.088 * 4691=412.81
σ₁ =  =
 =  = 29.15
 = 29.15 
σ₂ =  =
=  = 19.40
 = 19.40 
Samples size of California residents n₁ = 11,545 
Samples size of Oregon residents n₂ = 4,691
Hypothesis can be constructed thus
Let our null hypothesis be H ₀: p'₁ = p'₂
and alternative hypothesis H ₐ: p'₁ ≠ p'₂
Then we have  

The test statistics can be computed by
      
t₀ =  =      1104.83
 =      1104.83
c from tables is   P(T ≤ c) = 1 - α where α = 5% and c = 1.65 
since t₀ ≥ c then then the hypothesis is rejected which means the alternative hypothesis is rejected
b. Type I error, rejecting a true hypothesis