Hi guys please assist me answering the above questions in detailed. Thank you!
type i error - reject the null hypothesis when it is true
that is concluding a defendant guilty when they are not
type ii error - fail to reject the null hypothesis when it is
false
we fail to conclude that a defendant is guilty when they are
actually guilty
alpha = type i error
a)
we have to reduced type i error
hence alpha = 0.01
b)
we have to reduce type ii error
Decreasing alpha increases the chance of a Type II error
hence alpha = 0.10
Hi guys please assist me answering the above questions in detailed. Thank you! Errors in Hypothesis...
The notion of Type I and Type II Errors is very important in hypothesis testing. The Ho/Ha should be set up such that a Type I Error is more serious than a Type II Error. A common example used to discuss Type I and Type II errors is the example of a trial in the US. Under US law, a defendant is considered "innocent until proven guilty." You could set up this hypothesis test as follows: Ho: defendent is...
Case: Enron: Questionable Accounting Leads to CollapseIntroductionOnce upon a time, there was a gleaming office tower in Houston, Texas. In front of that gleaming tower was a giant “E,” slowly revolving, flashing in the hot Texas sun. But in 2001, the Enron Corporation, which once ranked among the top Fortune 500 companies, would collapse under a mountain of debt that had been concealed through a complex scheme of off-balance-sheet partnerships. Forced to declare bankruptcy, the energy firm laid off 4,000...
CASE 20 Enron: Not Accounting for the Future* INTRODUCTION Once upon a time, there was a gleaming office tower in Houston, Texas. In front of that gleaming tower was a giant "E" slowly revolving, flashing in the hot Texas sun. But in 2001, the Enron Corporation, which once ranked among the top Fortune 500 companies, would collapse under a mountain of debt that had been concealed through a complex scheme of off-balance-sheet partnerships. Forced to declare bankruptcy, the energy firm...