3.8.D—Interpret Type I and Type II errors

Interpret Type I and Type II errors.

• In some studies, making a Type I error may have more serious consequences than making a Type II error. In other studies, making a Type II error may have more serious consequences than making a Type I error. The consequences of each error should be considered prior to conducting the study.
• Because the significance level, α, is the probability of making a Type I error, the consequences of a Type I error influence decisions about a significance level.
• Because sample size influences the probability of making a Type II error, the consequences of a Type II error influence decisions about how large the sample size should be. Inference for Categorical Data: Proportions UNIT 3 100