Presentation on theme: "Type I and II Errors What are type I and II errors and what do they mean?"— Presentation transcript:
Type I and II Errors What are type I and II errors and what do they mean?
You never really know the truth about the Null Hypothesis, all you really know is what your sample tells you. We never really are sure if we make mistakes or not when we reject or fail to reject the Ho So, we measure the probability that we might make a mistake. We give the two possible mistakes names: Type I and Type II The truth about the Null
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.