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Choice of significance levels and two types of errors

Type I error: reject the null hypothesis when it is, in fact, true ( = .05)

Type II error: accept the null hypothesis when it is, in fact, false ()

Effects of levels of significance

very high confidence level (eg .0001) gives greater chance of Type II errors

very low confidence level (eg .1) gives greater chance of Type I errors

choice often depends on effects of result

(Type II error)

1 -

Not Reject H0

1 - (Power)

(Type I error)

Reject H0

H0 False

H0 True

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