7. An international corporation plans to institute a drug-testing plan for its e

Question

7. An international corporation plans to institute a drug-testing plan for its employees. An employee is assumed not to be a drug user, so the null hypothesis is “not a drug user,” and the alternative hypothesis is “drug user.” The test classifies a person as a drug user 4% of the time when the person is really not a drug user.

a. In as plain and simple English as possible (i.e., you are not to use any statistical terms such as “reject” or “fail to” or “null” or “hypothesis”), describe a type I error in this situation.

b. In as plain and simple English as possible (i.e., you are not to use any statistical terms such as “reject” or “fail to” or “null” or “hypothesis”), describe a type II error in this situation.

c. What is the chance of a Type I error in this situation?

Explanation / Answer

7. Solution:

(a) A Type I error is to conclude that the person is a drug user when he is not.
(b) A Type II error is to conclude that the person is not a drug user when he is.
(c) The chance of a Type I error (false positive) is 4%

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