Suppose that we failed to reject Ho for the test Ho The medi

Suppose that we failed to reject Ho for the test:

Ho: The medicine has no value    vs.    Ha: The medicine has value

a) If the medicine really has value, was an error made? If so, which type?

b) If the medicine really does not have value, was an error made? If so, which type?

c) Base on our statistical test results, will we produce the medicine for future use?

Solution

a) If the medicine has value and if we accepted null hypothesis, then we accepted wrong null hypothesis.

Type II error is made

b) If the medicine does not have value really, our decision was right. No error made.

c) If b is true, then do not produce medicine for future use.

But if a is true, we can produce for future use.