In statistical hypothesis testing, we evaluate a null hypothesis ($H_0$). Decisions made during this process can lead to errors. Understanding these errors is crucial for drawing accurate statistical inferences.
There are two primary types of errors that can occur when testing a null hypothesis ($H_0$):
The relationship between the actual state of the null hypothesis ($H_0$) and the decision made based on sample data determines the outcome. The table below summarizes the possibilities:
| Actual State of $H_0$ | Decision Based on Data | Outcome |
|---|---|---|
| $H_0$ is True | Reject $H_0$ | Type-I Error |
| $H_0$ is True | Fail to Reject $H_0$ | Correct Decision |
| $H_0$ is False | Reject $H_0$ | Correct Decision |
| $H_0$ is False | Fail to Reject $H_0$ | Type-II Error |
The question asks specifically about the definition of a Type-I error. Based on the standard definitions in statistical inference, a Type-I error is precisely the scenario where we reject the null hypothesis ($H_0$) when it is, in fact, true.