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| Card Drawn | ||||||||||
| My Guess |
A type I error occurs when we reject a true null hypothesis.
When the observations are in the tails (the gray areas), we believe
they are unusual and we reject the null hypothesis. However, it is
possible that the observations may fall in the tails by chance even
though the chance is low.
A type II error occurs when we fail to reject a false null hypothesis.
When the observations are outside the tails (i.e., in the orange areas), we believe they are not unusual and we fail to reject the false null hypothesis.
Use the applet below to explore the trade-off between Type I and Type II errors:
Decreasing the Type I error increases the Type II error, and vice versa.
The Type II error is also influenced by the difference between the parameter values in H0 and H1.