Sunday, August 5, 2012

Possible Outcomes of a Hypothesis Test


H0 True
H0 False
Reject H0
Error – Type 1
Correct Decision
Do not Reject H0
Correct Decision
Error – Type 1

Type I error - occurs if one rejects the null hypothesis when it is true.
Type II error - occurs if one does not reject the null hypothesis when it is false.
The critical value(s) separates the critical region from non critical region. The symbol for critical value is C.V.
The critical or rejection region - is the range of values of the test value that indicates that there is a significant difference and that the null hypothesis should be rejected.
The noncritical or non rejectional region - is the range of values of the test value that indicates the difference was probably due to chance and that the null hypothesis should not be rejected.


By: Andrea Beatrice Pechueco

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