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# type-i-error

1. ### Type I and II error

Can someone please explain to me how to calculate the probability of getting Type I and II errors? and is it true that if we increase the confidence level, it would reduce probability of getting type I error? and if we increase n, it would help reducing the probability of getting type II error...
2. ### P1.T2.20.14. Hypothesis testing

Learning objectives: Construct an appropriate null hypothesis and alternative hypothesis and distinguish between the two. Differentiate between a one-sided and a two-sided test and identify when to use each test. Explain the difference between Type I and Type II errors and how these relate to...
3. ### Confuse about the Type I error and Type II error

Hi everyone In the Model Validation Topic, I am confused why type I error leads to "increase losses" and type II error "increase opportunity cost". since I know that the type I error is reject H0 given H0 is True and type II error is accept H0 given H0 is False but not sure how these link to...
4. ### YouTube T2-13 Type I versus II error and power

Type I error mistakenly rejects the true null. The Type II error mistakenly accepts a false null. Significance, α, is the desired Prob[Type I error]. Power is 1 - β = 1 - Prob[Type II error] but is more difficult to compute because, while there is only one true null, there can be many false...
5. ### P2.T5.713. Backtesting in the Basel rules (Jorion Ch.6)

Learning objectives: Define and identify type I and type II errors. Explain the need to consider conditional coverage in the backtesting framework. Describe the Basel rules for backtesting. Questions: 713.1. In comparison to Basel III, which itself essentially incorporated the previous...