(a) Suppose you test a new medication and reject the null hypothesis (you conclude the medicine works). What kind of error could you have made?
(b) Again, you test a new medication and you fail to reject the null hypothesis (you conclude it does not work). What kind of error could you have made?
(a) If you make ̑̑ too big (e.g., ̑̑ = 0.2 (you should never use ̑̑ > 0.1)), what kind of error are you more likely to make (type I or type II)? Why?
(b) If you make ̑̑ too small (e.g., ̑̑ = 0.0000000001), what kind of error are you more likely to make? Why?