What is meant by the terms Type I and Type II statistical error? ...

[Haya94]

What is meant by the terms Type I and Type II statistical error?
 
  What will be an ideal response?

Question 2

Arrivals to a bank automated teller machine (ATM) are distributed according to a Poisson distribution with a mean equal to three per 15 minutes.Determine the probability that in a given 15-minute segment no customers will arrive at the ATM.
 
  A) 0.0124
  B) 0.0281
  C) 0.0314
  D) 0.0498

[Liamb2179]

Answer to Question 1

When a null hypothesis is tested using sample information, it is expected that sampling error will exist. It is possible that the sampling error will lead to an error in the conclusion that is reached with respect to the null hypothesis. For example, if the null hypothesis is true, extreme sampling error will push the test statistic into the rejection region. Rejecting a true null hypothesis is called a Type I error. Also, if the null hypothesis is false, the sample data may be such that we do not reject the null hypothesis. Accepting a false null hypothesis is referred to as a Type II error.

Answer to Question 2

D

[Haya94]

Excellent

[emsimon14]

Thanks for the timely response, appreciate it