as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
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describe the differences between type i and type ii errors.
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a type i error is a false positive, when a hypothesis test results in the rejection of a true null hypothesis. a type ii error is a false negative, when a hypothesis test fails to reject a false null hypothesis. in other words, a type i error is when a test incorrectly identifies an event as significant, while a type ii error is when a test fails to identify an event as significant when it is.
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