Type 1 and Type 2 Errors

We will continue learning about Hypothesis Testing by discussing the two types of errors we can make. 

No matter what situation is presented in hypothesis testing, we always assume that the Null Hypothesis is true. So when you perform an actual hypothesis test, you make one of two decisions:

1. Reject the Null Hypothesis or

2. Fail to Reject the Null Hypothesis

Because your decision will be based on sample data rather than the entire population, there is always the possibility that you will make the wrong decision. In hypothesis testing, we must accept the fact that our decision may be incorrect. 

Here are the two types of errors that can be made in hypothesis testing:

Type 1 Error occurs if the null hypothesis is rejected when it is actually true.
Type 2 Error occurs if the null hypothesis is not rejected when it is actually false.


Watch this video from 19:34 - 25:27 only!