A report recently submitted to the managing partner for a market research company stated "the hypothesis test may have resulted in either a Type I or a Type II error. We won't know which one occurred until later." This statement is one that we might correctly make for any hypothesis that we have conducted.

Question

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A Type I error occurs when a true null hypothesis is incorrectly rejected, while a Type II error happens when a false null hypothesis fails to be rejected. The statement implies uncertainty about which error might have occurred, but it doesn't reflect the nature of hypothesis testing where the type of potential error is known based on the decision made (rejecting or not rejecting the null hypothesis), not on future information.

A Report Recently Submitted to the Managing Partner for a Market