Type I Error in the United States

Type i Error in the International Business Landscape

Definition of Type i Error in the context of U.S. international business and public trade policy: An inferential error that occurs when attempting to generalize about reality based on examination of sample evidence or data. In statistics, the type I case involves a false-positive judgment meaning that test results suggest significant association among variables where none in fact exists; thus, the researcher incorrectly accept the false research hypothesis and rejects a true null hypothesis of no predictive association among variables. In practical terms, the type I error occurs whenever an innocent person in erroneously judged to be guilty and punished or when a patient tests positive and is treated for an illness he or she does not have. Attempts to reduce type I errors often increase type II errors.