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**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.

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**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!!! |