Identify the type I error and the type II error that corresponds to the given hy

Question

Identify the type I error and the type II error that corresponds to the given hypothesis. The proportion of settled medical malpractice suits is 0.32. Which of the following is a type I? error?

A. Reject the claim that the proportion of settled malpractice suits is 0.32 when the proportion is actually 0.32.

B. Fail to reject the claim that the proportion of settled malpractice suits is 0.32 when the proportion is actually different from 0.32.

C. Reject the claim that the proportion of settled malpractice suits is 0.32 when the proportion is actually different from 0.32.

D. Fail to reject the claim that the proportion of settled malpractice suits is 0.32 when the proportion is actually 0.32

Explanation / Answer

Solution :

We have the null hypothesis as H0 : "The proportion of settled medical malpractice suits is 0.32."

We know that the Type I Error and Type II Error are given as :

Type I Error : REJECT the null hypothesis (H0) when the null hypothesis (H0) is TRUE !

Type II Error : ACCEPT the null hypothesis (H0) when the null hypothesis (H0) is FALSE !

Thus, the Type I Error for the above hypothesis will be,

Option A : Reject the claim that the proportion of settled malpractice suits is 0.32 when the proportion is    actually 0.32.

Thus, the Type II Error for the above hypothesis will be,

Option B : Fail to reject the claim that the proportion of settled malpractice suits is 0.32 when the proportion is actually different from 0.32.

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