Article | REF: R250 V1

Estimators and hypothesis testing

Author: Jacques POIRIER

Publication date: July 10, 1992, Review date: August 18, 2022

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4. Second-class risk

4.1 The two risks of error

So far, we have considered a risk of error, i.e. a risk α of making an erroneous decision, which now needs to be explained in more detail. Vis-à-vis a hypothesis H 0 , for example the null hypothesis, α is the risk of rejecting the hypothesis H 0 when it is in fact correct. Typically, this is the supplier's risk. If we call H 0 the hypothesis that a manufacture is acceptable, this is the risk of making the decision to consider as unacceptable a batch that is in reality acceptable.

But we must also consider the other way of being wrong: this is the β risk of not rejecting the H ...

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