Indonesia Management Natural Power Resource Trade

Indonesia Management Natural Power Resource Trade

Indonesia Management Natural Power Resource Trade

In science and environmental management conclusions and decisions may be based on the outcome of statistical tests of null hypotheses. These tests are prone to two types of error. A Type I error is the rejection of a true null hypothesis, while a Type II error is the failure to reject a false null hypothesis, put another way, to detect a true effect. These errors have different consequences; which set of consequences is of most concern varies with the objectives of the test.

A Type I Error is the Rejection of a True Null Hypothesis

Scientists are cautious to avoid making Type I errors - falsely concluding an effect exists when it does not. Such an error could lead research programs astray, wasting research funds and harming the scientist's academic reputation. To protect against Type I error, the level of statistical significance (α), its rate of occurrence in the frequentist paradigm of classical statistics, is usually set quite low, commonly at 0.05 (5%), or lower.

A Type II Error is the Failure to Reject a False Null Hypothesis

Environmental managers charged with monitoring environmental conditions may be more concerned about committing Type II errors - wrongly concluding an effect does not exist when in fact it does. Such an error could lead to over harvesting of a natural resource, or cause an increased risk to public health.