Chapter 5 · Data Analysis: A Concise Overview of Statistical Techniques · Slide 188/274

Hypothesis Testing

Significance (α) — probability that a true null hypothesis is rejected.

5.2.1 · Hypothesis TestingStep 2 · Types of error

Step 2 · Setting the significance level

Significance (α) — probability that a true null hypothesis is rejected.

β — probability that a false null hypothesis is accepted.

α — Significance ↓

	Null hypothesis (H₀) is true	Null hypothesis (H₀) is false
Null hypothesis reject	Type I errorFalse positive	Correct decisionTrue positive
Null hypothesis do NOT reject	Correct decisionTrue negative	Type II errorFalse negative

↑ (1−β) — Power

QUESTIONSTAR · Dr. Paul Marx188 / 274