The correct option is True. [ANSWER]
Explanation:
In a hypothesis test there are 4 possible events which are shown in the following table:
H0 is | |||
TRUE | FALSE | ||
Decision |
Reject H0 |
Type I error |
Correct Decision |
Do no reject H0 |
Correct Decision | Type II error |
From the table above it is clear that a Type I error occurs when we reject a correct null hypothesis.
A Type II error occurs when we fail to reject a false null hypothesis.
In the other two cases, namely, rejecting a false null hypothesis and not rejecting a correct null hypothesis, the decision is correct.
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