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Question

Define Type I and Type II error for each scenario, and identify the cost(s) of each type of error.

Approaching O'Hare for landing, a British Air flight from London has been in a holding pattern for 4545 minutes due to bad weather. Landing is expected within 1515 minutes. The flight crew could declare an emergency and land immediately, but an FAA investigation would be launched and other flights might be endangered. The null hypothesis is that there is enough fuel to stay aloft for 1515 more minutes.

Solution

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Recall the possible decisions about the null hypothesis:

H0H_{0} is true H0H_{0} is false
Reject H0H_{0} Type I error\fbox{\text{Type I error}} Correct decision
Fail to reject H0H_{0} Correct decision Type II error\fbox{\text{Type II error}}

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