In: Statistics and Probability
A researcher claims that 5% of people who wear eyeglasses purchase their eyeglasses online. Describe type I and type II errors for a hypothesis test of the claim.
For this test, the correct set of hypotheses would be:
Null Hypothesis: Among the people who wear eyeglasses the percentage of them purchasing their eyeglasses online is 5%
Alternative Hypothesis: Among the people who wear eyeglasses the percentage of them purchasing their eyeglasses online is different from 5%
Type I Error: Rejecting the null hypothesis when actually it is true
In the given scenario, the type I error will be - concluding that people who wear eyeglasses, the percentage of them purchasing their eyeglasses online is different from 5% when actually the percentage purchasing their eyeglasses online is 5%.
Type II Error: Accepting the null hypothesis when actually it is false
In the given scenario, the type II error will be - concluding that people who wear eyeglasses, the percentage of them purchasing their eyeglasses online is 5% when actually the percentage purchasing their eyeglasses online is different from 5%.