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Type I and Type II Errors

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In the last few years, an organization has conducted 200 clinical trials to test the effectiveness of anti-anxiety drugs. Suppose, however, that all of those drugs were obtained from the same fraudulent supplier, which was later revealed to have been sending only inert substances (e.g., distilled water, sugar pills) instead of real drugs. If alpha = .05 was used for all hypothesis tests, how many of these 200 experiments would you expect to yield significant results? How many Type I errors would you expect? How many Type II errors would you expect?

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Solution Summary

Type I and type II errors are examined in 200 clinical trials to test the effectiveness of anti-anxiety drugs.

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In each of the 200 trials, the null and alternative hypotheses are:

H0: The drug is not effective
HA: The drug is effective

And we learned later that the true state of nature was H0: the drug is not effective.

When we set up a hypothesis test we choose the level of significance, ...

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