In the absence of outliers the mean estimate and type 1 error
of the two parameters were acceptable for all three models; however, the empirical standard error was much larger than the asymptotic standard error for the classical and semi-parametric models while these two types of standard error were similar in magnitude in the rank regression model.
2012) and thus provides an example of a possible type 1 error
In lending, correspondingly, a Type 1 error
would be rejecting a good loan, while a Type 2 error would be writing a bad loan, the economist said.
For example, a Type II error rate of 15 percent is associated with a Type 1 error
rate of 21 percent in 1996, while Type I error rates of more than 21 percent are associated with a 15 percent Type II error rate for the years 1997-2004.
This result should be interpreted cautiously as the type 1 error
in this study is huge.
978 Table 3 Type 1 Error
Rates of t-test under Amplification Effect for Different Sample Sizes, Number of DIF, and Magnitude of DIF Combinations Magnitude of DIF No DIF Raju's area 0.
If prophylactic use of B1 eventually turns into a type 1 error
, little will have been lost in such a failed experiment.
The probability of making a type 1 error
is termed the alpha.
It should be noted that this study is a partial replication and extension of earlier research; thus, the threat to validity imposed from a slight elevation of Type 1 error
is not as serious as it would have been without the earlier study.
TABLE 7 Out of Sample Predictions of Financial Distress for Australian General Insurers 1999 Reg'n 1999 Reg'n 2000 Pred'n 2001 Pred'n (1999 I'Vars) (1999 I'Vars) Distress 1 Type 2 Error Rate (%) Type 1 Error
Rate (%) 5 35.
However, Lee and Gurland (1977) showed analytically that the Type 1 error
rate of the one-sample t-test may differ greatly when sampling from distributions which have the same skewness and kurtosis.