Type II Error - CFA® Level 1 Exam | Test Prep

Type II Error

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Question

Which of the following best describes a type II error?

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Explanations

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A. B. C. D. E.

Explanation

A type II error occurs when one incorrectly fails to reject the null hypothesis. In most cases, the probability of a type II error is not expressly stated because the determination of this probability is inherently difficult. A type II error is contrasted by a type I error, which is defined as the act of incorrectly rejecting the null hypothesis.