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Hypothesis Testing

Type I, Type II, and Test Power

Description

Hypothesis testing can lead to four outcomes based on the true state of the null hypothesis and the choice to reject or not reject it. If the null hypothesis is true and the decision is not to reject it, that is a correct decision. If the null hypothesis is true but it is rejected, that is a Type I error.

Transcript

A hypothesis test generally begins by assuming that the null hypothesis is true.

If, in reality, such a null hypothesis is true, rejecting it may lead to an incorrect and misleading conclusion.

This mistake of rejecting the true null hypothesis is known as the Type-I error.

On the other hand, when the null hypothesis is fals...

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