Hypothesis Testing

Discussion E: Hypothesis Testing

Week 9 Post (300+ Words): In hypothesis testing we set alpha, the significance level, which limits the likelihood of making a Type 1 error if the null hypothesis were true. When does a type 2 error occur? Give a real world example of a decision and explain what the null hypothesis, alternative hypothesis, type 1 and type 2 errors would be – which would be worse in this case:

Choose two of your classmates’ posts. What could be done to lower the conditional probabilities of making the type 1 error and the type 2 error in their examples? Can both be lowered at the same time?