← All simulationsHypothesis Testing

Concept - fire alarm (or court verdict)

H₀ false
fire / guilty
H₀ true
no fire / innocent
Alarm rings / convicted
reject H₀
TP - correct rejectionFP - Type I error (α)
No alarm / acquitted
retain H₀
FN - Type II error (β)TN - correct

H₀ = “no fire”. Rejecting H₀ when fire is absent = Type I (false positive). Keeping H₀ when fire is present = Type II (missed fire). Power = probability a real fire is detected = 1 − β.

Scenario & probabilities

Scenario:

Run trials


Bars = observed counts; the same-colour dashed boxes = the counts expected from your α, power and P(H₀ true) after the trials run so far.