Type 1 and Type 2 errors Balancing the Risks of Errors in Hypothesis Testing The U.S. FDA
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Type 1 and Type 2 errors Balancing the Risks of Errors in Hypothesis Testing The U.S. FDA is responsible for approving new drugs. Many consumer groups feel that the approval process is too easy and, therefore, too many drugs are approved that are later found to be unsafe. On the other hand, a number of industry lobbyists have pushed for a more lenient approval process so that pharmaceutical companies can get new drugs approved more easily and quickly. This is from an article in the Wall Street Journal. Consider a null hypothesis, H0: New and untested drug is unsafe, and the alternative hypothesis HA: New drug is not unsafe.
- Write H0 and HA.
- Explain the risks of committing a Type 1 and Type 2 error.
- Which type of error is the consumer group trying to avoid?
- Which type of error is the industry lobbyists trying to avoid?
- From the MGMT650 content, how is the probability of a Type 1 error decreased?
- As a statistician designing an experiment, you know that you can decrease the probability of a type 2 error () by increasing the probability of a type 1 error (). How do you decrease the probability of a type 2 error without increasing the probability of a type 1 error?
- Think about the recent vaccinations developed for Covid in record time. Do you recall reading about the items above and are they important?
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