Type 1 and Type 2 Errors, something helpful

[rolo550]

Hey guys,
In the endless misery that is the prep for this thing, I was reading about type 1 and type 2 errors on wikipedia - it was easier for me to find it there than dig it out of the book - at any rate, they had a Mnemonic for Type 1 and 2 that I thought may be useful to some:
“For those experiencing difficulty correctly identifying the two error types, the following mnemonic is based on the fact that (a) an “error” is false, and (b) the Initial letters of “Positive” and “Negative” are written with a different number of vertical lines:
* A Type I error is a false POSITIVE; and P has a single vertical line.
* A Type II error is a false NEGATIVE; and N has two vertical lines.”
Again - Source Was Wikipedia - Not about to violate the ol ethics plagiarism stuff

 

[Dreary]

Just remember that Type I error is the serious type….you reject something that is true…nothing worse than doing that! If you reject something false, good for you. If you don’t reject something true, good for you as well. If you don’t reject something that is false, that’s bad, but it isn’t really serious…it was false, but you just didn’t care. So, type I is the worst error you can make, like when you reject the claim that it is sunny outside, when it is actually sunny outside. Or you reject someone’s innocence when they are really innocent…that’s just horrible.
Having said that, I don’t think you will need to know type I and II in this exam!

 

[Reggie]

Yeah I saw it for one sentence in the CFA quant section, and Passmaster did one sentence on it but I think they might just be refreshers. It’s not in the LOS and I have yet to see a question on it. They made sure to drill us in level I on that so I’m hoping it’s not an extra thing I need to put into my brain here.

 

[bpdulog]

This is Level 1 material.