In: Operations Management
Thought Question
Write a response to the following Thought Question using complete sentences. You should write a minimum of three (3) sentences for your answer. The full question is worth 3 points. Of these, ½ point is for grammar, spelling, and punctuation. The other 2½ points are for appropriateness and thoughtfulness in your response.
Think again about Type I and Type II Errors. Imagine you are making a decision for your company regarding employee work satisfaction. You would like to see it go up based on the decision you make. What would the consequences of a Type I Error be in this situation? How about the consequences of a Type II Error? Which do you think would be worse in this situation?
A type 1 mistake is otherwise called a bogus positive and happens when a specialist mistakenly dismisses a genuine invalid speculation. This implies your report that your discoveries are noteworthy whenever in actuality they have happened by some coincidence.
The likelihood of making a type I mistake is spoken to by your alpha level (α), which is the p-esteem underneath which you dismiss the invalid theory. A p-estimation of 0.05 shows that you are happy to acknowledge a 5% chance that you are incorrect when you dismiss the invalid theory.
You can lessen your danger of submitting a type I blunder by utilizing a lower an incentive for p. For instance, a p-estimation of 0.01 would mean there is a 1% possibility of submitting a Type I blunder.
Notwithstanding, utilizing a lower an incentive for alpha implies that you will be less inclined to identify a genuine contrast on the off chance that one truly exists (therefore gambling a type II mistake).
The results of making a type I blunder imply that changes or intercessions are made which are superfluous, and in this way sit around idly, assets, and so forth.
Type II mistakes ordinarily lead to the conservation of business as usual (for example intercessions continue as before) when change is required.