Type I error and a Type II error

Type I and II Errors

1 . A Type I Error in statistics , in layman 's term , equates to having rejected a hypothesis of interest while the assumption is actually true On the other hand , a Type II error is committed when the hypothesis of interest is actually false but was failed to get rejected based on the underlying analysis (Intuitor , 1996

On a personal experience in working with an IT distributor company these errors were also observed in many different aspects of business transactions . One example when a Type I Error occurred

was when the sales department actually predicted that one retailer was going to for five desktop computers after three business days but failed to request from the inventory department to reserve stocks and instead released the remaining items to outright purchases from the store . In the end , the retailer actually ed five desktops three days later but no more stocks were available

Meanwhile , Type II Errors were also committed in the same company where I have previously worked for . This happened when one account number for a freight company was lost in the records . The inventory department assumed that the numbers indicated in the purchase was the billable account number . One team suggested that it didn 't look any similar to other account numbers but the Release Department staff proceeded using it . In the end , the numbers were really not freight account numbers and the freight company charged the business instead

2 . In practice , Type II...