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Question of the Week: Level 1 - Quantitative Methods

OntarioPosts: 73 Associate
Which is a false statement?

Question of the Week: Level 1 - Quantitative Methods 10 votes

A. The probability of a Type 1 error is given by α.
0% 0 votes
B. The probability of a Type 2 error is given by 1 – α.
70% 7 votes
C. The only way to reduce the probability of both Type 1 and Type 2 errors simultaneously is to increase the sample size.
30% 3 votes

Comments

• OntarioPosts: 73 Associate
The correct answer is Option B.

The probability of a Type I error in testing a hypothesis is denoted by the Greek letter alpha, α.

The probability of a Type 2 error in testing a hypothesis is denoted by the Greek letter beta, β.

Option Β is difficult to quantify and it does not = 1 – α.

Finally, with respect to Option C, the only way to reduce the probabilities of both types of errors simultaneously is to increase the sample size, n.

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