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Section 10.3 Type I and Type II Errors
Recall that the purpose of a hypothesis test is to verify the validity of a claim about a population based on a single sample. Since we are relying on a sample, there is risk that the conclusions we draw about the population will be wrong due to sampling error.
Figure 10.3.1. Link to YouTube video
Definition 10.3.2 .
Type I error: occurs when
\(H_0\) is rejected when in reality it is true.
The probability of making this error is known as
\(\alpha\text{,}\) the significance level.
A Type I error is known as the
producer’s risk .
Type II error: occurs when we fail to reject
\(H_0\) when it is false.
The probability of making this error is
\(\beta\text{.}\)
A Type II error is known as the
consumer’s risk .
