\( \definecolor{colordef}{RGB}{249,49,84} \definecolor{colorprop}{RGB}{18,102,241} \)
Context: Two-Sample t-test
A pharmaceutical company compares a new drug against a placebo using a two-sample t-test.
  • \(H_0: \mu_{\text{drug}} = \mu_{\text{placebo}}\) (The drug has no effect).
  • \(H_1: \mu_{\text{drug}} > \mu_{\text{placebo}}\) (The drug is effective).
  1. Describe the Type I error. Why might regulatory bodies (like the FDA) want to minimize this error (\(\alpha\))?
  2. Describe the Type II error. Why might the company want to minimize this error?

Capture an image of your work. AI teacher feedback takes approximately 10 seconds.