Type Ii Error in the United States

Type ii Error in the International Business Landscape

Definition of Type ii 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 II case involves a false-negative result, meaning that test results suggest insignificant association among variables where a significant association does in fact exist; thus, the researcher incorrectly rejects the true research hypothesis and accepts the false null hypothesis of no predictive association among variables. In practical terms, the type II error occurs whenever a guilty person is erroneously judged to be innocent and is set free or whenever a sick patient is erroneously judged free of disease based on test results and not treated. Attempts to reduce type II errors often increase type I errors.