**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:**

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