Hypothesis Testing: Type I Error, Type II Error

Hypothesis Testing: Type I Error, Type II Error

When you do a hypothesis test, two types of errors are possible: type I and type II. The risks of these two errors are inversely related and determined by the level of significance and the power for the test. Therefore, you should determine which error has more severe consequences for your situation before you define their risks.No hypothesis test is 100% certain. Because the test is based on probabilities, there is always a chance of drawing an incorrect conclusion.

Statistics: Type I & Type II Errors Simplified

Error Type (Type I & II)