In: Statistics and Probability
A test of H0: μ = 60 versus H1: μ ≠ 60 is
performed using a significance level of 0.01. The p-value
is 0.033.
If the true value of μ is 53, does the conclusion result in a Type
I error, a Type II error, or a correct decision?
a- Type II error
b-Type I error
c- Correct decision
d-
Solution:
Given: A test of H0: μ = 60 versus H1: μ ≠ 60 is performed using a significance level of 0.01.
p-value = 0.033.
Decision Rule:
Reject null hypothesis H0, if p-value < 0.01 level of
significance, otherwise we fail to reject H0
Since p-value = 0.033. > 0.01 level of significance, we fail to reject H0.
That means we conclude that: mean μ = 60 is correct.
But we are given that: the true value of μ is 53, that means null hypothesis actually not true or it is False.
So here we fail to reject H0, in fact null hypothesis is False.
Following are the definitions of Type I , Type II and correct decision.
Type I Error : Reject null hypothesis , in fact it is True.
Type II Error : Fail to reject null hypothesis , in fact it is False.
Correct decision: Reject H0, when it is False or Fail to reject H0, when it is True.
Thus according to definitions stated above, we have made Type II Error.
Type II Error : Fail to reject null hypothesis , in fact it is False.
a- Type II error