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Type I and Type II errors

When sampling testing and researching, you can make two types of error:

Type I Error

In manufacturing, a type I error occurs where a lot is rejected when it need not be. This happens where a sample contains a disproportionately high number of errors.

Type I errors are also called Producer's Risk as they add unnecessary wastage cost for manufacturers.

In research, a type I error occurs when it is concluded that the primary hypothesis is true when it is actually false.

In summary, a Type I error finds problems where non exist.

Type II Error

In manufacturing, a type II error occurs where a lot is accepted when it should be rejected. This happens when a sample contains a disproportionately low number of errors. This is more likely when the sample size is low.

In research, a type II error occurs when it is concluded that the null hypothesis is true when it is actually false.

Type II errors are also called Consumer's Risk, as errors may be passed on to customers.

See also:

Two error types, Sampling

 

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