Type I
from class:
Intro to Business Statistics
Definition
A Type I error occurs when a true null hypothesis is incorrectly rejected. It is also known as a false positive error.
5 Must Know Facts For Your Next Test
- The probability of committing a Type I error is denoted by $\alpha$ (alpha).
- $\alpha$ is often set at 0.05, meaning there is a 5% risk of rejecting the null hypothesis when it is actually true.
- Reducing $\alpha$ decreases the likelihood of a Type I error but increases the risk of a Type II error.
- Type I errors are considered more serious in many contexts because they imply finding an effect or difference that does not exist.
- In hypothesis testing, controlling for Type I errors involves setting an appropriate level of significance ($\alpha$) before conducting the test.
Review Questions
- What does a Type I error signify in hypothesis testing?
- How is the probability of making a Type I error represented and typically set?
- Why might reducing $\alpha$ increase the risk of committing another type of error?
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