Coupon Accepted Successfully!


Errors in estimation


Please note:

  • You are inferring for a population, based only on a sample
    • This is no proof that your decision is correct
    • It’s just a hypothesis
  • There is still a chance that your inference is wrong
  • How do I quantify the prob. of error in inference?      


  • Type I and Type II Errors
    • Type I error occurs if the null hypothesis is rejected when it is true
    • Type II error occurs if the null hypothesis is not rejected when it is false
  • Significance Level
    • α -> Significance level
      • the upper-bound probability of a Type I error
    • 1 - α ->confidence level
      • the complement of significance level


Test Your Skills Now!
Take a Quiz now
Reviewer Name