There are two types of error that may occur in hypothesis testing: They are, logically, called type I error and type II errors.
Type I error
A type I error occurs when the null hypothesis is rejected despite being true.
Type II error
A type II error occurs when the null hypothesis is not rejected despite being false.
| Conclusion | |||
| Reject H0 in favor of H1 | Do not reject H0 | ||
| “Truth” | H0 | Type I error | Right decision |
| H1 | Right decision | Type II error |
| Example In the example of cats and dogs, a type I error would thus occur if we concluded that there is a difference in the intelligence between cats and dogs although that is not true. A type II error, on the other hand, would occur if we concluded that there is no difference in intelligence when in fact there is. |
| Note Type I errors are generally considered to be more serious that type II errors. Type II errors are often due to poor statistical power (often because of small sample size). |