
cpr 1 datasetTwo-sided hypothesis test
\(H_0\): Blood thinners do not affect survival rate. \(p_T-p_C = 0\)
\(H_A\): Blood thinners affect survival rate. \(p_T-p_C \neq 0\)
Example of one-sided hypothesis test
\(H_0\): Blood thinners do not affect survival rate. \(p_T-p_C = 0\)
\(H_A\): Blood thinners increase survival rate. \(p_T-p_C > 0\)
Density function for N(0, 0.0955) with tails shaded beyond 0.13.
In the study on the blood thinners, we concluded that there is no significant difference in survival rates. If in reality the rate of survival is significantly different between two groups that would mean that we committed Type 2 Error
If the p-value of the test were lower than the significance level and we rejected the null hypothesis, but, in reality, the survival rates are the same - that would mean we committed a Type 1 Error
Note that once a conclusion is made (based on p-value or z-score) we can possibly commit only one type of error