This article covers meaning & overview of Type-1 Error from statistical perspective.
Statistical errors are an integral part of hypothesis testing. Type-I Error is the error which is used to reject a true null hypothesis (Ho). It is also known as “Error of the first kind”.
In simple words, Type- I error indicates that a given condition is true, when it is actually false. It means that we believe a falsehood.
The probability of type-I error is denoted by α (alpha). α is also called as the bound on Type I error. It is the level of significance of the test.
FORMULA:
Since, α is a conditional probability, which can be calculated as follows:
α = P(Rejecting H0│H0 is True)
Errors in Hypothesis Testing:
Decision |
Ho True |
Ho False |
Reject Ho |
Type I Error (α) |
Correct Assessment |
Fail to reject Ho |
Correct Assessment |
Type II Error (β) |
Since Type I is the more serious error (usually), that is the one we concentrate on. We usually fix α to be very small (0.05, 0.01).
EXAMPLE:
When a person is accused of a crime, we put him on trial even after knowing his innocence. Type- I error in this case is that the person is truly innocent but the jury finds him guilty.
Hence, this concludes the definition of Type-1 Error along with its overview.
This article has been researched & authored by the Business Concepts Team which comprises of MBA students, management professionals, and industry experts. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
Browse the definition and meaning of more similar terms. The Management Dictionary covers over 1800 business concepts from 5 categories.
Continue Reading:
What is MBA Skool?About Us
MBA Skool is a Knowledge Resource for Management Students, Aspirants & Professionals.
Business Courses
Quizzes & Skills
Quizzes test your expertise in business and Skill tests evaluate your management traits
Related Content
All Business Sections
Write for Us