In a Hypothesis test there are two possible mistakes Null Hypothesis TrueFalse Result of Hypothesis Test Reject Fail to Reject Correct Type I Error Type II Error
In our system of courts Defendant InnocentGuilty Jury decision Convict Don’t Convict Correct Type I Error Type II Error
A Type I error happens when we reject a true null hypothesis ◦ we convict an innocent person A Type II error happens when we fail to reject a false hypothesis ◦ we set free a guilty person
Sunday School teachers Upstanding Citizens Jailed Criminals The Usual Suspects
Appearance of Guilt Standard of Proof Not Guilty VerdictGuilty Verdict Type I Error
Innocent Suspects Dumb Criminals with incompetent lawyers caught red handed Standard of Proof Not Guilty VerdictGuilty Verdict
Type I Error Type II Error Standard of Proof Not Guilty VerdictGuilty Verdict Innocent Suspects Smart Criminals with top notch lawyers
Alpha(α) = Probability of a Type I error. Beta(β) = Probability of a Type II error. Power of the test = 1 – β Power is the probability of rejecting the null hypothesis if it were actually false. Beta and power can only be calculated if we knew the actual hypothesis.
If we decrease alpha, beta is increased and power is decreased If we increase alpha, beta is decreased and power is increased If we increase the sample size, alpha is decreased, beta is decreased and power is increased.