Having conducted a rather extensive study aimed at determining whether there is

Question

Having conducted a rather extensive study aimed at determining whether there is a gas pocket 10,000 feet below ground, an geologist for Apache proposes that there “is no gas below” and encourages the production unit to halt the plans to drill a well on this site. But………in reality, there was gas at 10,000 feet all the time. The error here is that essentially the null hypothesis of “there is no gas down below” was retained. The fact that the null hypothesis was ultimately retained in error is an example of:

a. a power error

b. a population error

c. a beta error

d. an alpha error

Explanation / Answer

Given that, null and alternative hypothesis are,

H0: there is no gas down below at 10000 feet

H1: there is a gas pocket 10000 feet below ground.

Here, The error here is that essentially the null hypothesis of “there is no gas down below” was retained.

Note:

Type II error ( error ): we incorrectly accept (or “fail to reject”) the null hypothesis (there is no gas below) even though the alternative hypothesis is true (there is a gas below).

Hence, The fact that the null hypothesis was ultimately retained in error is an example of a beta () error.

Answer: c) a beta error

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