FRM-Hypothesis testing
Finance Junkie
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Joined: Mon Feb 04, 2013 3:35 pm

FRM-Hypothesis testing

Postby » Thu Mar 14, 2013 4:13 pm

A goal of an “innocent until proven guilty” justice system is to place a higher priority on:

A) avoiding type II errors.
B) avoiding type III errors.
C) avoiding type I errors.
D) the null hypothesis.

Is it (D) or (C) which one is more accurate and why

Finance Junkie
Posts: 356
Joined: Wed Apr 11, 2012 11:26 am

FRM-Hypothesis testing

Postby content.pristine » Thu Mar 14, 2013 7:25 pm

The answer here is A.
The judicial system would rather let a guilty guy free, than arrest an innocent.
Taking an innocent man to jail is a type II error.

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