NAME: Nikko P.

Emping PROGRAM AND YEAR: BSA – 3

OFFER CODE & SCHEDULE: 6497 TTH (10:30 A.M. – 12:00 P.M.)

1. What is type 1 error?

- In hypothesis testing, a type I error, sometimes referred to as a false
positive, happens when a correct null hypothesis is rejected, suggesting
that there is an effect or difference when, in fact, there isn't. It means
concluding that results are statistically significant when, in reality, they
came about purely by chance or because of unrelated factors. Put
more simply, it occurs when you draw the conclusion that something is
true when it isn't.

- Examples:
o A test result says you have coronavirus, but you actually don’t.

o Convicting someone of a crime when they are actually innocent.

2. What is type 2 error?

- In hypothesis testing, a type II error, sometimes referred to as a false
negative, occurs when a false null hypothesis is accepted, suggesting
that there is no effect or difference when, in fact, there is. Stated
differently, it occurs when you miss something that is true. This is not quite
the same as “accepting” the null hypothesis, because hypothesis testing
can only tell you whether to reject the null hypothesis. Instead, a Type II
error means failing to conclude there was an effect when there actually
was. In reality, your study may not have had enough statistical power to
detect an effect of a certain size.

- Examples:
o a patient who actually has a disease receives a negative test
result, indicating they don't have the disease when they do.

o a person carrying prohibited items goes undetected by the

security system, leading to a potential security breach
3. What is a power of a test?
- It refers to the likelihood of successfully rejecting a false null hypothesis
which is a statistical test's power. Stated differently, it assesses a test's
capacity to identify a real impact or difference when one exists. A test
with high power has a higher probability of accurately identifying a real
effect, whereas a test with low power has a higher probability of missing
a real effect and making a Type II error.

- Application/Example:
o a manufacturing company that produces light bulbs wants to
ensure that their light bulbs meet a certain brightness standard.
They implement a quality control process where they randomly
select a sample of light bulbs from each production batch and
test their brightness. The null hypothesis in this scenario is that the
brightness of the light bulbs in the production batch is equal to or
greater than the specified standard. The alternative hypothesis is
that the brightness is below the standard. The power of the test in
this context would be the probability of correctly rejecting the null
hypothesis (i.e., detecting that the brightness is below the
standard) when it's actually true (i.e., when the brightness is below
the standard).

- The strength of a power of a test is that it reduces the risk of Type II errors
(false negatives), where true effects or differences may go undetected.
This is particularly important in fields such as medicine, public health, and
quality control where failing to detect a real treatment effect or risk
factor could have serious consequences. Therefore, studies with high
power provide more reliable evidence, enabling more confident and
informed decision-making.