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Type I and II Errors JV lecture chapter 21 What is a type I and II error.

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Presentation on theme: "Type I and II Errors JV lecture chapter 21 What is a type I and II error."— Presentation transcript:

1 Type I and II Errors JV lecture chapter 21 What is a type I and II error

2 The Innocent The Guilty Beyond doubt Appearance of Guilt Type I error Innocent Punished Type II error Guilty go Free

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4 Status quoSample Alpha level Appearance of error

5 Status quo Sample Alpha level Appearance of error

6 Status quoSample data Alpha Level Appearance of error

7 Status quo Sample data Alpha Level Appearance of error

8 Status quo Sample data Alpha Level applet Appearance of Error Type II error Keep Bad H o Type I error Reject Good H o

9 Status quo Sample data Alpha Level applet Appearance of Error Type I error Reject Good H o Type II error Keep Bad H o

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11 A company manufacturing computer chips finds that 8% of all chips manufactured are defective. Management is concerned that employee inattention is partially responsible for the high defect rate. In an effort to decrease the percentage of defective chips, management decides to offer incentives to employees who have lower defect rates on their shifts. The incentive program is instituted for 1 month. If successful, the company will continue with the incentive program.

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