Section 10.6

Type II Error and Power of the Test

Understand the probability of failing to reject a false null hypothesis and how to design more powerful tests.

1

Type II Error ()

Type II Error: Failing to reject when the alternative hypothesis is actually true.

The probability of a Type II error () depends on:

  • The actual value of the parameter under
  • The sample size
  • The level of significance
2

Power of the Test

Power: The probability of correctly rejecting a false null hypothesis. It's the probability of detecting an effect when one actually exists.

Low Power

High chance of missing a real effect

High Power

Likely to detect a real effect

3

Factors Affecting Power

Increase Sample Size ()

Larger samples reduce variability → higher power

Increase Significance Level ()

Larger α makes rejection easier → higher power (but higher Type I risk)

Larger Effect Size

Bigger difference from is easier to detect

Lower Variability ()

Less noise in data makes effects easier to detect

!

Common Pitfalls

Confusing α and β

α = P(Type I) = P(reject true H₀). β = P(Type II) = P(fail to reject false H₀).

Thinking Power = 1 - α

Power = 1 - β, not 1 - α. These are different concepts.

Ignoring Power in Study Design

Low-powered studies often fail to detect real effects, wasting resources.

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