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Question of the Week: Level 1 - Quantitative Methods
Which is a false statement?
Question of the Week: Level 1 - Quantitative Methods 7 votes
A. The probability of a Type 1 error is given by α.
B. The probability of a Type 2 error is given by 1 – α.
C. The only way to reduce the probability of both Type 1 and Type 2 errors simultaneously is to increase the sample size.
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Comments
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.