Type of error


Assume state regulators double-check the random sample of cars which a suspect repair shop has certified as okay. They will revoke the shop's license if they determine significant evidence that the shop is certifying vehicles that don't meet standards.

a) in this context, what is a Type 1 error

b) in this context, what is a Type 2 error

c) which type of error would the shop's owner consider more serious?

d) which type of error might environmentalists consider more serious?

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Basic Statistics: Type of error
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