An orange juice manufacturer advertises a new orange juice product that contains 50% less sugar. This new product is expected to increase profits substantially because they create the 50% less sugar product by replacing 50% of the juice with water while selling it for the same price. An inspector wants to investigate whether the actual percentage of water in the product is within 5% of the intended 50%. He selects a random sample of 500 containers of orange juice and determined the percentage of each that is water. He plans to conduct a significance test at the a = 0.01 level to see if there is convincing evidence that the proportion of water added is different from 0.50. What is the probability that the inspector makes a Type I error?
(A) 0.01
(B) 0.05
(C) 0.10
(D) 0.45
(E) 0.50