Esis proposes a relationship between twe o or mo variables, symbolize as states of nature and decisions on nuli hypothesis decis ion on null states of nature hy

esis proposes a relationship between twe o or mo variables, symbolize as States of Nature and Decisions on NulI Hypothesis Decis ion on Null States of Nature Hypothesis Null Hypothesis True Null Hypothesis False Type II error Probability = B Accept Correct Decision Probability = 1 -p Type I error Probability = a Correct Decision Reject Probability=1-B (a is called significance level) (1-8 is called power of a test)