two types of errors can occur during hypothesis testing

436 Views Asked by At

The painkiller drug needs to have a time of effect of at most 200 seconds to be considered as having done a satisfactory job. Given the same sample data (size, mean, and standard deviation) of the previous question, test the claim that the newer batch produces a satisfactory result and passes the quality assurance test. Utilize 2 hypothesis testing methods to make your decision. Take the significance level at 5 %. Clearly specify the hypotheses, the calculated test statistics, and the final decision that should be made for each method. You know that two types of errors can occur during hypothesis testing — namely Type-I and Type-II errors — whose probabilities are denoted by α and β respectively. For the current sample conditions (sample size, mean, and standard deviation), the value of α and β come out to be 0.05 and 0.45 respectively. Now, a different sampling procedure(with different sample size, mean, and standard deviation) is proposed so that when the same hypothesis test is conducted, the values of α and β are controlled at 0.15 each. Explain under what conditions would either method be more preferred than the other, i.e. give an example of a situation where conducting a hypothesis test having α and β as 0.05 and 0.45 respectively would be preferred over having them both at 0.15. Similarly, give an example for the reverse scenario - a situation where conducting the hypothesis test with both α and β values fixed at 0.15 would be preferred over having them at 0.05 and 0.45 respectively. Also, provide suitable reasons for your choice(Assume that only the values of α and β as mentioned above are provided to you and no other information is available).