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For each of the following situations, state whether a Type I, a Type II, or neither error has been made. a. A test of \(\mathrm{H}_{0}: \mu=25\) vs. \(\mathrm{H}_{\mathrm{A}}: \mu>25\) rejects the null hypothesis. Later it is discovered that \(\mu=24.9\). b. A test of \(\mathrm{H}_{0}: p=0.8\) vs. \(\mathrm{H}_{\mathrm{A}}: p<0.8\) fails to reject the null hypothesis. Later it is discovered that \(p=0.9\). c. A test of \(\mathrm{H}_{0}: p=0.5\) vs. \(\mathrm{H}_{\mathrm{A}}: p \neq 0.5\) rejects the null hypothesis. Later it is discovered that \(p=0.65\). d. A test of \(\mathrm{H}_{0}: p=0.7\) vs. \(\mathrm{H}_{\mathrm{A}}: p<0.7\) fails to reject the null hypothesis. Later it is discovered that \(p=0.6\).

Short Answer

Expert verified
a. Type I error. b. No error. c. No error. d. Type II error.

Step by step solution

01

Situation a: Identifying the Error Type

In the first situation, the null hypothesis \(\mathrm{H}_{0}: \mu=25\) was rejected, but it was later discovered that \(\mu=24.9\). Here, a Type I error was committed. This occurs when the null hypothesis is true, but is incorrectly rejected.
02

Situation b: Identifying the Error Type

In situation b, the null hypothesis \(\mathrm{H}_{0}: p=0.8\) was not rejected, and it was later discovered that \(p=0.9\). In this case, no error was made because the null hypothesis was correctly not rejected, as \(p>0.8\).
03

Situation c: Identifying the Error Type

In situation c, the null hypothesis \(\mathrm{H}_{0}: p=0.5\) was rejected, and it was later discovered that \(p=0.65\). Here, no error was made. The null hypothesis was correctly rejected, as \(p \neq 0.5\).
04

Situation d: Identifying the Error Type

In the last situation, the null hypothesis \(\mathrm{H}_{0}: p=0.7\) was not rejected, and it was later discovered that \(p=0.6\). Here, a Type II error was made. This occurs when the null hypothesis is false, but is not rejected.

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Key Concepts

These are the key concepts you need to understand to accurately answer the question.

Type I Error
A Type I error occurs when the null hypothesis is true, but it is mistakenly rejected. Imagine you're a teacher grading a test and you mark a correct answer as wrong. That's akin to a Type I error.

In hypothesis testing, we deal with a probability, known as the significance level (denoted by \( \alpha \)). This is the chance of making a Type I error—rejecting a true hypothesis.
  • If \( \alpha = 0.05 \), there's a 5% risk of rejecting the null hypothesis when it is actually true.
  • This is also referred to as a "false positive"—thinking there's an effect when there's not.
An example from the original exercise is part (a), where the test mistakenly rejected the null hypothesis \( H_0: \mu = 25 \), even though \( \mu = 24.9 \), which is within statistical tolerance of 25.
Type II Error
A Type II error occurs when the null hypothesis is false, but we fail to reject it. This is similar to a situation where someone cheats on an exam, but the teacher doesn't catch it.

In hypothesis testing, this error is represented by \( \beta \), the probability of not rejecting a false null hypothesis.
  • If \( \beta \) is too high, it means your test isn't sensitive enough, risking a "false negative"—missing a true effect.
  • Reducing \( \beta \) increases the power of the test, allowing you to better detect true effects.
A classic example is situation (d) from the exercise. Here, the hypothesis \( H_0: p = 0.7 \) was not rejected, even though the true proportion was \( p = 0.6 \).
Null Hypothesis
The null hypothesis is a fundamental concept in statistical testing, representing the default position that there is no effect or difference. It is denoted as \( H_0 \).

It's like assuming a person is innocent until proven guilty. Hypothesis tests are designed to test the strength of the evidence against \( H_0 \).
  • The null hypothesis is typically set up to be rejected, so evidence against it needs to be strong enough—beyond predetermined significance levels like 0.05 or 0.01.
  • Failing to reject \( H_0 \) means that the evidence is not strong enough to support an alternative conclusion.
Throughout the given exercise, we saw several hypotheses like \( \mathrm{H}_0: \mu = 25 \) or \( \mathrm{H}_0: p = 0.7 \). The outcomes depended on whether these null hypotheses were valid or false upon later investigation.

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Most popular questions from this chapter

A medical researcher tested a new treatment for poison ivy against the traditional ointment. He concluded that the new treatment is more effective. Explain what the P-value of 0.047 means in this context.

A company is sued for job discrimination because only \(19 \%\) of the newly hired candidates were minorities when \(27 \%\) of all applicants were minorities. Is this strong evidence that the company's hiring practices are discriminatory? a. Is this a one-tailed or a two-tailed test? Why? b. In this context, what would a Type I error be? c. In this context, what would a Type II error be? d. In this context, what is meant by the power of the test? e. If the hypothesis is tested at the \(5 \%\) level of significance instead of \(1 \%\), how will this affect the power of the test? \(\mathrm{f}\). The lawsuit is based on the hiring of 37 employees. Is the power of the test higher than, lower than, or the same as it would be if it were based on 87 hires?

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Exercise 23 ?describes the loan score method a bank uses to decide which applicants it will lend money. Only if the total points awarded for various aspects of an applicant's financial condition fail to add up to a minimum cutoff score set by the bank will the loan be denied. a. In this context, what is meant by the power of the test? b. What could the bank do to increase the power? c. What's the disadvantage of doing that?

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