Type I and Type II Errors
The Medco pharmaceutical company has just developed a new antibiotic. Two percent of children taking competing antibiotics experience headaches as a side effect. A researcher for the Food and Drug Administration wishes to know if the percentage of children taking the new antibiotic who experience a headache as a side effect is more than 2%. The researcher conducts a hypothesis test withH0:p= 0.02 andH1:p7 0.02. Explain what it would mean to make a (a) Type I error and (b) Type II error.
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