In Example 6.21, we looked at probabilities associated with the administration of liedetector tests. A National Research Council study in 2002, headed by Stephen Fienberg from Carnegie Mellon University, found that lie-detector results are "better than chance, but well below perfection."32 Typically, the test will conclude someone is a spy 80% of the time when he or she actually is a spy. However, 16% of the time, the test will conclude someone is a spy when he or she is not.
a. What is the probability of committing a Type I Error?
b. What would be the consequences of committing a Type I Error?
c. What is the probability of committing a Type II Error?
d. What would be the consequences of committing a Type II Error?