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A farmer is considering a new variety of wheat

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A farmer is considering a new variety of wheat. He'll plant it if it has higher yield. He conducts an experiment with the null hypothesis that the new variety has the same yield as his old variety, and the alternative hypothesis that the new variety has higher yield. He'll plant the new variety if the null is rejected; otherwise, he'll keep planting the old.

a. A Type I error has what consequences?

b. A Type II error has what consequences?

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Given Information

  • Null hypothesis: The old and new varieties have the same yield.
  • Alternative hypothesis: The new variety has a higher yield.

a.

Type 1 error means rejecting the null hypothesis when it is true. It means that if the farmer commits a type 1 error, then it may lead him to use the new variety even though it is no better than the old one.

b.

Type 2 error means accepting the null hypothesis when it is false. It means that if the farmer commits type 2 error then it may lead him to use the old variety only; even when the new variety yields higher than the old variety.