AIOU SOLVED ASSIGNMENT 2 MATH AND STATE
TYPE I AND TYPE-II ERRORS IN HYPOTHESIS TESTING
When you do a hypothesis test, two types of errors are
possible: type I and type II. The risks of these two errors are inversely
related and determined by the level of significance and the power for the test.
Therefore, you should determine which error has more severe consequences for
your situation before you define their risks.
Type I error:- When the null hypothesis is true and you
reject it, you make a type I error. The probability of making a type I error is
a, which is the level of significance you set for your hypothesis test. An a of
0.05 chance that you are wrong when you reject the null hypothesis. To lower
this risk, you must use a lower value for a (Alpha). However, using a lower
value for alpha means that you will be less likely to detect a true difference
if one really exists.
Type II Error:- When the null hypothesis is false and you
fail to reject it, you make a type II error. The probability of making a type
II error is β
which depends on the power of the test. You can decrease your risk of
committing a type II error by ensuring your test has enough power. You can do
this by ensuring your sample size is large enough to detect a practical
difference when one truly exists. The probability of rejecting the null
hypothesis when it is false is equal to 1- β. This value is the power of the
test.
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