Type 1 and 2 errors

Type 1 Error:

  • A type 1 error occurs when we incorrectly reject H₀.
  • A p-value is the probability of making a type 1 error.
  • α, or your significance level, is saying that you have a certain acceptable probability of making a type one error.

Type 1 Error Example:

H₀: There is no relationship between the amount of pizza eaten and reported happiness levels.

H₁: There is a relationship between the amount of pizza eaten and reported happiness levels.

If we conclude that there is a relationship between the amount of pizza eaten and reported happiness levels when there really isn’t, we have made a type 1 error.

Type 2 Error:

  • A type 2 error occurs when we incorrectly accept H₀.
  • β is the probability of making a type 2 error.

Type 2 Error Example:

H₀: μ=17

H₁: μ≠17

If it is concluded that μ is equal to 17 even when μ is not really equal to 17, we have made a type 2 error.

A Quick Table:

Screen Shot 2017-06-13 at 2.00.18 PM.png

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