Many consumer groups feel that the Country A drug approval p

Many consumer groups feel that the Country A drug approval process is too easy and, as a result, too many drugs are approved that are later found to be unsafe On the other hand, a number of industry lobbyists have pushed for a more lenient approval process so that pharmaceutical companies can get new drugs approved more easily and quickly Consider a null hypothesis that a new, unapproved drug is unsafe and an alternative hypothesis that a new, unapproved drug is safe. Complete parts (a) through (c) below. Explain the risks of committing a Type I or Type II error Choose the correct answer below.

Solution

Answer: Option B

When the null hypothesis is true and you reject it, you make a type I error

When the null hypothesis is false and you fail to reject it, you make a type II error