Data Visualization for Business
A Type II error occurs when a statistical test fails to reject a false null hypothesis. In simpler terms, it means that a test concludes there is no effect or difference when, in fact, there is one. Understanding Type II error is crucial because it relates to the power of a test, which indicates its ability to detect an effect when it exists. The connection between Type II error and concepts like statistical significance and confidence intervals helps highlight the importance of choosing appropriate sample sizes and significance levels in hypothesis testing.
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