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notes 34

notes 34 - Errors Practicality and Power in Hypothesis...

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Errors, Practicality and Power in Hypothesis Testing Submitted by gfj100 on Wed, 11/11/2009 - 13:16 Errors in Decision Making – Type I and Type II How do we determine whether to reject the null hypothesis? It depends on the level of significance α, which is the probability of the Type I error. What is Type I error and what is Type II error? When doing hypothesis testing, two types of mistakes may be committed and we call them Type I error and Type II error. Decision Reality H 0 is true H 0 is false Reject H 0 and conclude H a Type I error Correct Do not reject H 0 Correct Type II error If we reject H 0 when H 0 is true, we commit a Type I error. The probability of type I error is denoted by alpha, α (as we already know this is commonly 0.05) If we accept H 0 when H 0 is false, one commits a type II error. The probability of Type II error is denoted by Beta, β: Our convention is to set up the hypotheses so that type I error is the more serious error.

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• Spring '11
• AndyRegards
• Null hypothesis, Statistical hypothesis testing, Type I and type II errors, type ii error, Mr. Orangejuice

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notes 34 - Errors Practicality and Power in Hypothesis...

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