Power

What does the power mean? How do we identify it and why is it important?

Power = 1 - P(Type II error) - probability we correctly reject H0 when the reality is that H0 is false [correctly detecting a false H0]

It’s what we want in a significance test - rejecting the null when it’s false.

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The probability of correctly rejecting the null hypothesis given that the alternate hypothesis is true. Think of it as the opposite as the TYPE 1 Error.

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