Type i and ii errors, Applied Statistics

Assignment Help:

TYPE I AND II Errors

If a statistical hypothesis is tested, we may get the following four possible cases:

  1. The null hypothesis is true and it is accepted;

  2. The null hypothesis is false and it is rejected;

  3. The null hypothesis is true, but it is rejected;

  4. The null hypothesis is false, but it is accepted.

Clearly, the last two cases lead to errors which are called errors of sampling. The error made in (c) is called Type I Error. The error committed in (d) is called Type II Error. In either case a wrong decision is taken.

P(Committing a Type I Error)

=       P (The Null Hypothesis is true but is rejected)\

=       P (The Null Hypothesis is true but sample statistic falls in the rejection region)

=    α, the level of significance

P(Committing a Type II Error)

=       P (The Null Hypothesis is false but sample statistic falls in the acceptance 
         region)

=        β (say)

The level of significance,   α , is known. This was fixed before testing started.   β is known only if the true value of the parameter is known. Of course, if it is known, there was no point in testing for the parameter.


Related Discussions:- Type i and ii errors

Ashland MultiComm Services, Suppose that in the actual survey of 50 prospec...

Suppose that in the actual survey of 50 prospective customers, 6 subscribe to the 3 for all offer, what does this tell you about the previous estimate of the proportion of customer

Cluster sampling, Cluster Sampling Here the population is divide...

Cluster Sampling Here the population is divided into clusters or groups and then Random Sampling is done for each cluster. Cluster Sampling differs from Stratified Sampl

Binomial and continuous model, Exercise: (Binomial and Continuous Model.) C...

Exercise: (Binomial and Continuous Model.) Consider a binomial model of a risky asset with the parameters r = 0:06, u = 0:059, d =  0:0562, S0 = 100, T = 1, 4t = 1=12. Note that u

Gcnnv, Ask questiovdgngddndgdngngngngn #Minimum 100 words accepted#

Ask questiovdgngddndgdngngngngn #Minimum 100 words accepted#

Statistics assignment, To compare three brands of computer keyboards, four ...

To compare three brands of computer keyboards, four data entry specialists were randomly selected. Each specialist used all three keyboards to enter the same kind of text material

Central tendency and dispersion in statistics, Central Tendency and Dispers...

Central Tendency and Dispersion in Statistics: Write a note on the following : i)    What is the importance of Measures Of Central Tendency and Dispersion in Statistics ?

Schedule, Schedule Schedule is also used for the collection of primary ...

Schedule Schedule is also used for the collection of primary data. A schedule is a list of question. it is a device of obtaining answer to the questions in a form which is fill

Types of cost-reimbursable contracts, Types of cost-reimbursable contracts ...

Types of cost-reimbursable contracts are:   Cost Plus Fixed Fee contract (CPPF): Compensation is based on a fixed sum independent of the final project cost. The customer a

Regression, why we use dummy variable

why we use dummy variable

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd