Question

1. In light of the university admission scandal, discuss Type 1 and 2 errors with costs and consequences (which are many) if the null H0 is that the student is qualified.

2. In light of the recent flooding around Tampa, one subdivision has approached the county to do something about the flooding for years. The Ha is that there is not flooding potential. Again identify Type 1 and 2 errors with costs and consequences, which are again many.

Answer 1

1. Type 1 error : Null H0 is TRUE but we REJECT it. i.e. In reality, the concerned student is qualified BUT we conclude that he\she is not qualified. As a result, We will deny admission to an Actually qualified student. This will deteriorate the overall quality of the incoming class due to absence of a quality student. University will also miss out on the potential branding of itself that might have happened through the rejected student's quality work at university.

Type 2 error : Null H0 is FALSE but We ACCEPT it i.e. In reality, the concerned student is NOT qualified BUT we conclude that he\she is qualified. As a result, We will accept an Actually unqualified student. This will deteriorate the overall quality of the incoming class due to low quality of that particular student. University will also have to face overall decrease in the passing out students' quality, which might bring down university's reputation.

2. Note: Since Ha is :   there is not flooding potential; H0 will be :  there is flooding potential.

Type 1 error : Null H0 is TRUE but we REJECT it. i.e. In reality, the region has Flooding potential BUT we conclude that it DOESN'T HAVE. As a result, We will not take any preventive measures to avoid flooding. This will put the whole local community at the risk of facing adversities caused by flooding.

Type 2 error : Null H0 is FALSE but We ACCEPT it i.e. In reality, the region doesn't have Flooding potential BUT we conclude that it DOES HAVE. As a result, We will take preventive measures to avoid flooding and also to save the local community from flooding risk. This will cause extra financial burden on the local authorities which could have been spent on some other useful developmental activities.

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