HYPOTHESIS TESTING AND TYPE ERRORS Assignment Example | Topics and Well Written Essays - 1000 words

HYPOTHESIS TESTING AND TYPE ERRORS - Assignment Example The Type II error is not rejecting the null hypothesis that the mean weight of a package is 20 ounces when it is in fact false. In other words, we decide that the mean weight of a package is 20 ounces, but in reality, it is different from 20 ounces. When the alternate hypothesis involve less than (â€Å"†) symbols, then the test is a one-tailed test. When the alternate hypothesis involve not equal to (â€Å"≠ Ã¢â‚¬ ) symbol, then the test is a two-tailed test. For example for the problem one scenario, the hypothesis for a one-tailed and a two-tailed test will be P-value: The P-value is referred to as observed significance level or probability value of a hypothesis test. The P-value of a hypothesis test is equal to the smallest significance level at which the null hypothesis can be rejected. In other words, the P-value is referred as the smallest significance level for which the observed sample data results in rejection of H0. Statistically significant: If the P-value of the hypothesis test is less than the significance level (0.05 or 0.01), then the null hypothesis is rejected and the results of the test are said as statistically significant results. 4. A homeowner is getting carpet installed. The installer is charging her for 250 square feet. She thinks this is more than the actual space being carpeted. She asks a second installer to measure the space to confirm her doubt. Write the null hypothesis Ho  and the alternative hypothesis Ha. 5. Drug A is the usual treatment for depression in graduate students. Pfizer has a new drug, Drug B, that it thinks may be more effective. You have been hired to design the test program. As part of your project briefing, you decide to explain the logic of statistical testing to the people who are going to be working for you.   In my opinion, Type II error would be more severe. This is because in this case people will not buy Drug B and hence will not avail better treatment for depression when it is in