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A drug company just spent a billion dollars to develop a new drug
to cure zits and
you analyze the data for them in a competent and honest way and tell them
"hey there's no statistically significant difference between ZitsBeGone and
whipped cream".
You think they'll shrug their shoulders and walk away? They'll want more
than that. They'll say "how do you know you're right?" In fact maybe they
are right. You accepted the null hypothesis, but it doesn't mean to say
that it's correct.
So inherent in your results are errors. There are two types of errors:
- Type 1 error
is true but we reject it. As an example,
you get 100 heads in a row, which is exceedingly unlikely for an unbiased
coin (that is, for the hypothesis to be correct), so you reject it.
However it turns out that it is unbiased. Weird huh? What's the
probability of getting that wrong? It's just which in this case
is . In this case you were exceedingly unlucky.
- Type 2 error
- We reject
, and accept , even though
is correct. Just because we didn't find statistical significance doesn't
mean to say that the effect isn't there. As an example, that billion
dollar drug actually did work, but by some fluke you didn't see an
effect. Now 500 other groups have seen that it works great. You got egg
on your face, but you know you did the right thing. You were unlucky. That
can happen too.
Josh Deutsch
2009-03-05
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