CFA Practice Question

CFA Practice Question

What is the probability of making a Type II error if the null hypothesis is actually true?
A. .05
B. 0
C. alpha
Explanation: The type II error is accepting a null hypothesis when it is actually false. The probability of committing this error is called beta. Therefore the probability of making a type II error when the null is true is zero.

User Contributed Comments 4

User Comment
takor Type II error; failing to reject a null hypothesis when it is actually false
Mikehuynh Type I error: reject a true null hypothesis
=> fail to reject a false alternative hypothesis
Type II error: fail to reject a false null
hypothesis
=> reject a true alternative hypothesis
Significance of the these = alpha
homermatrix H0 = Innocent Defendant
H1 = Guilty Defendant

Type 1: Innocent is Judged guilty
Type 2: Guilty is judged innocent

Since H0 is true i.e. he is innocent, there is no chance for him to be guilty and be judged innocent
Rsanches Homermatrix, awesome example!!!
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