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    Hypothesis Testing: Two Types of Possible Error

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    Prottoy
    This document discusses hypothesis testing and the two types of possible errors: Type I and Type II errors. It provides an example where your friend Sam claims he can make 40 baskets per hour from the 3-point line. To test this, you observe Sam over 10 days and calculate statistics to determine if you can reject the null hypothesis that his ability is less than 40 baskets per hour. The document defines Type I and Type II errors and explains how sample size affects the probability of each type of error.

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    Hypothesis Testing: Two Types of Possible Error

    Uploaded by

    Prottoy
    33 views33 pages
    This document discusses hypothesis testing and the two types of possible errors: Type I and Type II errors. It provides an example where your friend Sam claims he can make 40 baskets per hour from the 3-point line. To test this, you observe Sam over 10 days and calculate statistics to determine if you can reject the null hypothesis that his ability is less than 40 baskets per hour. The document defines Type I and Type II errors and explains how sample size affects the probability of each type of error.

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    Module-3_-Lesson-6

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    This document discusses hypothesis testing and the two types of possible errors: Type I and Type II errors. It provides an example where your friend Sam claims he can make 40 baskets per hour from the 3-point line. To test this, you observe Sam over 10 days and calculate statistics to determine if you can reject the null hypothesis that his ability is less than 40 baskets per hour. The document defines Type I and Type II errors and explains how sample size affects the probability of each type of error.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    33 views33 pages

    Hypothesis Testing: Two Types of Possible Error

    Uploaded by

    Prottoy
    This document discusses hypothesis testing and the two types of possible errors: Type I and Type II errors. It provides an example where your friend Sam claims he can make 40 baskets per hour from the 3-point line. To test this, you observe Sam over 10 days and calculate statistics to determine if you can reject the null hypothesis that his ability is less than 40 baskets per hour. The document defines Type I and Type II errors and explains how sample size affects the probability of each type of error.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 33

    Hypothesis Testing Two types of possible error

    Type I error

    Type II error
    Hypothesis Testing Two types of possible error
    Example
    Your friend Sam claims that he can shoot 40 or more baskets in an hour
    from the 3-point line in a Basketball court. So, Sam is making a claim
    about a population parameter, in this case it is his true shooting ability
    from the 3-point line in a Basketball court. This can be likened to the
    population mean mu. Thus Sam is claiming that the population mean mu
    of his shooting ability is greater than or equal to 40 baskets in an hour
    from the 3-point line in a Basketball court.
    Hypothesis Testing Two types of possible error
    Example
    Your friend Sam claims that he can shoot 40 or more baskets in an hour
    from the 3-point line in a Basketball court. So, Sam is making a claim
    about a population parameter, in this case it is his true shooting ability
    from the 3-point line in a Basketball court. This can be likened to the
    population mean mu. Thus Sam is claiming that the population mean mu
    of his shooting ability is greater than or equal to 40 baskets in an hour
    from the 3-point line in a Basketball court.
    Hypothesis Testing Two types of possible error
    Example
    Your friend Sam claims that he can shoot 40 or more baskets in an hour
    from the 3-point line in a Basketball court. So, Sam is making a claim
    about a population parameter, in this case it is his true shooting ability
    from the 3-point line in a Basketball court. This can be likened to the
    population mean mu. Thus Sam is claiming that the population mean mu
    of his shooting ability is greater than or equal to 40 baskets in an hour
    from the 3-point line in a Basketball court.
    Hypothesis Testing Two types of possible error
    Example
    Your friend Sam claims that he can shoot 40 or more baskets in an hour
    from the 3-point line in a Basketball court. So, Sam is making a claim
    about a population parameter, in this case it is his true shooting ability
    from the 3-point line in a Basketball court. This can be likened to the
    population mean mu. Thus Sam is claiming that the population mean mu
    of his shooting ability is greater than or equal to 40 baskets in an hour
    from the 3-point line in a Basketball court.
    Hypothesis Testing Two types of possible error
    Example (…continued)
    Next, you decide to test this claim. For that, you take Sam to the
    Basketball court everyday for 10 days and make him shoot baskets from
    the 3 point line for an hour every day. You end up with 10 data points
    which are the number of baskets Sam shot in those 10 days. You can
    calculate the sample mean and the sample standard deviation from
    these ten observations.
    Hypothesis Testing Two types of possible error
    Example (…continued)
    Next, you decide to test this claim. For that, you take Sam to the
    Basketball court everyday for 10 days and make him shoot baskets from
    the 3 point line for an hour every day. You end up with 10 data points
    which are the number of baskets Sam shot in those 10 days. You can
    calculate the sample mean and the sample standard deviation from
    these ten observations.
    Hypothesis Testing Two types of possible error
    Example (…continued)
    Next, you decide to test this claim. For that, you take Sam to the
    Basketball court everyday for 10 days and make him shoot baskets from
    the 3 point line for an hour every day. You end up with 10 data points
    which are the number of baskets Sam shot in those 10 days. You can
    calculate the sample mean and the sample standard deviation from
    these ten observations.
    Hypothesis Testing Two types of possible error

    Step 1 : Formulate Hypothesis


    Hypothesis Testing Two types of possible error

    Step 1 : Formulate Hypothesis


    H0: µ ≥ 40
    Hypothesis Testing Two types of possible error

    Step 1 : Formulate Hypothesis


    H0: µ ≥ 40 ‘µ’ is Sam’s true ability to
    shoot baskets in 1 hour
    from the 3-point line
    Hypothesis Testing Two types of possible error

    Step 1 : Formulate Hypothesis


    H0: µ ≥ 40 ‘µ’ is Sam’s true ability to
    shoot baskets in 1 hour
    HA: µ < 40
    from the 3-point line
    Hypothesis Testing Two types of possible error

    Step 1 : Formulate Hypothesis


    H0: µ ≥ 40 ‘µ’ is Sam’s true ability to
    shoot baskets in 1 hour
    HA: µ < 40
    from the 3-point line

    Step 2 : Calculate the t-statistic


    Hypothesis Testing Two types of possible error

    Step 1 : Formulate Hypothesis


    H0: µ ≥ 40 ‘µ’ is Sam’s true ability to
    shoot baskets in 1 hour
    HA: µ < 40
    from the 3-point line

    Step 2 : Calculate the t-statistic

    Step 3 : Cutoff values for the t-statistic


    Hypothesis Testing Two types of possible error

    Step 1 : Formulate Hypothesis


    H0: µ ≥ 40 ‘µ’ is Sam’s true ability to
    shoot baskets in 1 hour
    HA: µ < 40
    from the 3-point line

    Step 2 : Calculate the t-statistic

    Step 3 : Cutoff values for the t-statistic

    rejection region α
    Hypothesis Testing Two types of possible error

    Step 1 : Formulate Hypothesis


    H0: µ ≥ 40 ‘µ’ is Sam’s true ability to
    shoot baskets in 1 hour
    HA: µ < 40
    from the 3-point line

    Step 2 : Calculate the t-statistic

    Step 3 : Cutoff values for the t-statistic

    Step 4 : Check whether t-statistic falls in


    the rejection region

    rejection region α
    Hypothesis Testing Two types of possible error
    Suppose that Sam’s true ability is indeed ≥ 40.
    Hypothesis Testing Two types of possible error
    Suppose that Sam’s true ability is indeed ≥ 40.

    However the 10 days were not good for Sam.

    He gave a low sample average.

    You reject the Null hypothesis.


    Hypothesis Testing Two types of possible error
    Suppose that Sam’s true ability is indeed ≥ 40.

    However the 10 days were not good for Sam.

    He gave a low sample average.

    You reject the Null hypothesis.

    Type I error: Rejecting the Null Hypothesis when it is true.


    Hypothesis Testing Two types of possible error
    Suppose that Sam’s true ability is indeed ≥ 40.

    However the 10 days were not good for Sam.

    He gave a low sample average.

    You reject the Null hypothesis.

    Type I error: Rejecting the Null Hypothesis when it is true

    Would you know while conducting a Hypothesis test that a Type I


    error has occurred?
    Hypothesis Testing Two types of possible error
    Suppose that Sam’s true ability is indeed ≥ 40.

    However the 10 days were not good for Sam.

    He gave a low sample average.

    You reject the Null hypothesis.

    Type I error: Rejecting the Null Hypothesis when it is true

    Would you know while conducting a Hypothesis test that a Type I


    error has occurred?

    ‘α’, the significance level is also known as the probability of Type I


    error.
    Hypothesis Testing Two types of possible error

    Type II error: Not rejecting the Null Hypothesis when it is false


    Hypothesis Testing Two types of possible error

    Type II error: Not rejecting the Null Hypothesis when it is false

    Sam’s true ability is NOT ≥ 40.


    Hypothesis Testing Two types of possible error

    Type II error: Not rejecting the Null Hypothesis when it is false

    Sam’s true ability is NOT ≥ 40.

    However the 10 days were lucky for Sam.


    He gave a high sample average.
    Hypothesis Testing Two types of possible error

    Type II error: Not rejecting the Null Hypothesis when it is false

    Sam’s true ability is NOT ≥ 40.

    However the 10 days were lucky for Sam.


    He gave a high sample average.

    You DID NOT reject the Null hypothesis.


    Hypothesis Testing Two types of possible error

    Type II error: Not rejecting the Null Hypothesis when it is false

    Sam’s true ability is NOT ≥ 40.

    However the 10 days were lucky for Sam.


    He gave a high sample average.

    You DID NOT reject the Null hypothesis. Type II error


    Hypothesis Testing Two types of possible error

    Reducing the probability of Type I and Type II errors


    Hypothesis Testing Two types of possible error

    Reducing the probability of Type I and Type II errors

     Probability of Type I error is set by our choice of α


    Hypothesis Testing Two types of possible error

    Reducing the probability of Type I and Type II errors

     Probability of Type I error is set by our choice of α


     Typically α = 0.05 or 0.01
    Hypothesis Testing Two types of possible error

    Reducing the probability of Type I and Type II errors

     Probability of Type I error is set by our choice of α


     Typically α = 0.05 or 0.01
    Hypothesis Testing Two types of possible error

    Reducing the probability of Type I and Type II errors

     Probability of Type I error is set by our choice of α


     Typically α = 0.05 or 0.01

     Probability of Type II error can be reduced by taking a


    larger sample size.
    Hypothesis Testing Two types of possible error

    Reducing the probability of Type I and Type II errors

     Probability of Type I error is set by our choice of α


     Typically α = 0.05 or 0.01

     Probability of Type II error can be reduced by taking a


    larger sample size.
    Hypothesis Testing Two types of possible error

    Reducing the probability of Type I and Type II errors

     Probability of Type I error is set by our choice of α


     Typically α = 0.05 or 0.01

     Probability of Type II error can be reduced by taking a


    larger sample size.

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