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!!! |