Examples identifying Type I and Type II errors | AP Statistics | Khan Academy

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Examples identifying Type I and Type II errors.

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Thought this was gonna be about Type I and Type II Diabetes.

bjduncc
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only 4 comments, why such empty... I dont understand the logic of choosing Ho and Ha, if Ha is true they will build a cafe. So if we fail reject Ho, meaning the results are less than .40, (they should not build a cafe.) and in reality, its Ha (they consider building cafe.) wouldnt that give us C) They consider building new cafe. when they should not... fail to reject & Ha = Type2... why is the answer A?

MuhammadSoroya
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Easy way to remember type 1 and 2 errors:
Type 1 includes explicit costs and is an error of commision (committing the wrongful)
Type 2 includes implicit (opportunity) costs and is an error of ommision (not doing what was right)
Type 1 errors are often more serious as they're explicit and thus more transparent. Often avoiding one error comes at the cost of committing another, weigh in which error matter the most in your scenario.

rajvaswani